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Financial Innovation

Table 6 Unit root test results

From: Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

Variables

Panel (A): Levin–Lin–Chu (2002)

Panel (B): Im–Pesaran–Shin (2003)

With trend

With cross-sectional dependence

With trend

With cross-sectional dependence

Non-performing loans

6.563*

− 11.321*

− 2.121**

− 10.523*

Profitability

− 12.244*

− 10.553*

− 5.554*

− 5.415*

Capital regulation

− 7.351*

− 6.753*

− 6.332*

− 7.254*

Liquidity

− 5.241*

− 5.635*

− 12.554*

− 6.346*

Inefficiency

− 11.231*

− 6.566*

− 7.433*

− 9.431*

Income diversification

− 17.533*

− 11.328*

− 6.243*

− 1.977***

Country risk index

− 10.436*

− 6.257*

− 5.653*

− 5.568*

Political risk index

− 5.533*

− 7.588*

− 6.268*

− 5.433*

Economic risk index

− 6.257*

− 6.438*

− 11.463*

− 7.436*

Financial risk index

− 10.352*

− 5.478*

− 8.577*

− 10.411*

Financial market development

− 11.127*

− 6.244*

− 3.435**

− 3.435*

Lending interest rate

− 13.251*

− 4.332*

− 4.525*

− 2.328*

Global risk

− 9.425*

− 6.553*

− 6.356*

− 7.326*

  1. Table 6 shows the panel unit root test results of investigated variables. The null hypothesis of Levin–Lin–Chu (LLC) and Im–Pesaran–Shin (IPS) unit root test is panels contain unit roots. The symbols *, **, and *** denote statistical significance at the 1%, 5%, and 10% levels, correspondingly
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