Impact of learning through credit and value creation on the efficiency of Japanese commercial banks

Aduba, Joseph Jr.; Izawa, Hiroshi

doi:10.1186/s40854-021-00268-8

Financial Innovation

Table 7 Estimation result of Cubic approximation (egn.13)

From: Impact of learning through credit and value creation on the efficiency of Japanese commercial banks

		(1) \(EVA\)		(2) \(FISIM\) (GO)		(3) Credit (tloans)		(4) \(Secinv\)		(5) \(TI\)
Full sample
\(ln{w}_{p}\)		0.8394		− 0.0374		0.2909***		0.3839***		0.2377***
		(0.5789)		(0.1108)		(0.0601)		(0.1258)		(0.0656)
\(ln{w}_{d}\)		0.5891***		0.0555**		0.1129***		0.1231***		0.1259***
		(0.1088)		(0.0279)		(0.0223)		(0.0260)		(0.0230)
\(ln{w}_{k}\)		− 0.2071		0.0590		0.0716		0.0609		0.0695
		(0.1957)		(0.0670)		(0.0602)		(0.0699)		(0.0625)
\(lnNPA\)		− 0.0395		− 0.1130***		0.0212		− 0.0224		0.0271
		(0.1282)		(0.0269)		(0.0159)		(0.0330)		(0.0181)
\({\varnothing }_{it-1}\)		− 0.2299		− 0.9417**		5.7486*		− 2.0566		0.8872
		(0.1664)		(0.4648)		(3.0760)		(1.4622)		(2.5243)
\({\left({\varnothing }_{it-1}\right)}^{2}\)		0.0163		0.0842**		− 0.4362**		0.0716		− 0.1148
		(0.0278)		(0.0370)		(0.1949)		(0.1055)		(0.1582)
\({\left({\varnothing }_{it-1}\right)}^{3}\)		0.0003		− 0.0023**		0.0102**		− 0.0009		0.0032
		(0.0012)		(0.0010)		(0.0041)		(0.0025)		(0.0033)
\(\_Con\)		3.2391		5.3041***		− 26.6792*		14.2604**		− 2.2931
		(2.4567)		(1.8542)		(15.8901)		(6.4147)		(13.0633)
\(Obs\)		1687		1687		1687		1687		1687
\(R\_square\)		0.0855		0.3372		0.5822		0.5847		0.5872
\(F\)		10.3957		51.7086		89.3735		142.7922		89.8418
\(p\)		0.0000		0.0000		0.0000		0.0000		0.0000
\(rmse\)		1.1443		0.1380		0.1015		0.1779		0.1102
City banks
\(ln{w}_{p}\)		0.7469		− 0.1678		0.4931***		0.7031***		0.5531***
		(0.6236)		(0.3111)		(0.1012)		(0.1429)		(0.1152)
\(ln{w}_{d}\)		0.5775***		0.3725*		0.2916***		0.4892***		0.3768***
		(0.1097)		(0.1689)		(0.0584)		(0.1004)		(0.0680)
\(ln{w}_{k}\)		− 2.0536**		− 0.4365		− 0.3899*		− 0.6302		− 0.5387*
		(0.6376)		(0.5029)		(0.1733)		(0.5044)		(0.2499)
\(lnNPA\)		0.1352		− 0.0295		0.0573		− 0.1329**		0.0135
		(0.1432)		(0.1022)		(0.0309)		(0.0451)		(0.0334)
\({\varnothing }_{it-1}\)		2.1559		4.8406		18.1738		54.4984		151.0664
		(17.6303)		(23.3113)		(96.7778)		(33.3907)		(82.9505)
\({\left({\varnothing }_{it-1}\right)}^{2}\)		− 0.4496		− 0.3837		− 0.9965		− 3.5532		− 8.6660
		(1.2969)		(1.5760)		(5.6554)		(2.0481)		(4.7594)
\({\left({\varnothing }_{it-1}\right)}^{3}\)		0.0184		0.0100		0.0182		0.0760		0.1652
		(0.0316)		(0.0354)		(0.1099)		(0.0417)		(0.0908)
\(\_Con\)		1.3247		− 17.3389		− 115.8322		− 275.8021		− 880.6086
		(75.3655)		(113.2906)		(551.2763)		(180.7805)		(480.7934)
\(Obs\)		74		74		74		74		74
\(R\_square\)		0.5825		0.3535		0.7835		0.7084		0.8172
\(F\)		11.3257		40.726		70.344		112.322		50.542
\(p\)		0.0000		0.0000		0.0000		0.0000		0.0000
\(rmse\)		0.3824		0.2499		0.0795		0.1788		0.0874
Regional Bank I
\(ln{w}_{p}\)		0.6056		− 0.0449		0.3379***		0.4236**		0.2743***
		(0.9126)		(0.1531)		(0.0819)		(0.1902)		(0.0876)
\(ln{w}_{d}\)		0.6200***		0.0469		0.1076***		0.1194***		0.1240***
		(0.1478)		(0.0310)		(0.0262)		(0.0318)		(0.0266)
\(ln{w}_{k}\)		− 0.0686		0.0748		0.0790		0.0703		0.0767
		(0.1653)		(0.0732)		(0.0690)		(0.0794)		(0.0718)
\(lnNPA\)		0.1107		− 0.1440***		0.0143		− 0.0005		0.0291
		(0.2052)		(0.0338)		(0.0222)		(0.0514)		(0.0263)
\({\varnothing }_{it-1}\)		− 0.2618		3.5565**		17.0785		− 1.7361		11.1628
		(0.3066)		(1.3716)		(16.9818)		(8.2992)		(13.0859)
\({\left({\varnothing }_{it-1}\right)}^{2}\)		0.0137		− 0.3000**		− 1.1727		0.0640		− 0.7698
		(0.0543)		(0.1200)		(1.1732)		(0.6400)		(0.8997)
\({\left({\varnothing }_{it-1}\right)}^{3}\)		0.0007		0.0086**		0.0261		− 0.0010		0.0171
		(0.0024)		(0.0035)		(0.0270)		(0.0163)		(0.0206)
\(\_Con\)		3.0454		− 11.6691**		− 84.4241		11.4127		− 55.8601
		(3.6630)		(5.2636)		(81.7623)		(35.2986)		(63.1201)
\(Obs\)		999		999		999		999		999
\(R\_square\)		0.0793		0.3690		0.6033		0.5607		0.6019
\(F\)		6.7744		48.9343		65.9328		92.4020		57.4983
\(p\)		0.0000		0.0000		0.0000		0.0000		0.0000
\(rmse\)		1.1963		0.1276		0.1046		0.1765		0.1123
Regional bank II
\(ln{w}_{p}\)	0.8775		0.1474		0.1531*		0.2656		0.0527
	(0.7830)		(0.1303)		(0.0842)		(0.1603)		(0.0837)
\(ln{w}_{d}\)	0.7428***		0.0733		0.1010**		0.1011*		0.1094**
	(0.2529)		(0.0606)		(0.0451)		(0.0515)		(0.0473)
\(ln{w}_{k}\)	− 0.6926		0.0356		0.0617		0.0549		0.0592
	(0.6259)		(0.1538)		(0.1256)		(0.1479)		(0.1326)
\(lnNPA\)	− 0.2432		− 0.1134**		0.0315		− 0.0237		0.0326
	(0.1785)		(0.0427)		(0.0260)		(0.0451)		(0.0275)
\({\varnothing }_{it-1}\)	0.3474		1.2743		− 3.2691		14.8398		14.2644
	(0.3148)		(1.7088)		(10.6298)		(13.5675)		(10.0397)
\({\left({\varnothing }_{it-1}\right)}^{2}\)	− 0.0945		− 0.1295		0.1838		− 1.2967		− 1.0977
	(0.0602)		(0.1542)		(0.7531)		(1.1002)		(0.6998)
\({\left({\varnothing }_{it-1}\right)}^{3}\)	0.0058*		0.0045		− 0.0039		0.0359		0.0272
	(0.0029)		(0.0046)		(0.0177)		(0.0296)		(0.0162)
\(\_Con\)	4.5179		− 2.8296		16.7733		− 55.0559		− 62.6781
	(3.6815)		(6.4268)		(49.7791)		(55.3558)		(47.7211)
\(Obs\)	614		614		614		614		614
\(R\_square\)	0.1287		0.4698		0.5800		0.6492		0.6085
\(F\)	13.6980		33.4816		71.5356		93.8622		101.9037
\(p\)	0.0000		0.0000		0.0000		0.0000		0.0000
\(rmse\)	1.0992		0.1193		0.0918		0.1708		0.0994

Driscoll–Kraay standard errors in parenthesis.
***p < 0.01; **p < 0.05; *p < 0.1
\(\text{EVA}\sim \text{economic value added,}\)
FISIM(GO) \(\sim \,\text{Financial Intermediation Services Indirectly Measured (Gross Output)}\)
\(\text{secinv}\,\sim\, \text{total security investment},\)
\(\text{tloans}\,\sim \text{total loans},\)
\(TI\sim \text{Total Investment}\)
\({\varnothing }_{it-1}\sim \text{learning elasticity}\)

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