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Financial Innovation

Table 6 Additional test: Monarchies vs. Republican countries

From: Bank efficiency in Middle East and North African countries: Does political connection type matter?

Variables

CE

(1)

TE

(2)

AE

(3)

CE

(4)

TE

(5)

AE

(6)

CE

(7)

TE

(8)

AE

(9)

Panel A: Monarchist countries

A_PC

 − 0.017*

 − 0.042**

 − 0.035

      
 

(− 1.78)

(− 1.98)

(− 1.32)

      

CEO_PC

   

 − 0.008**

 − 0.021*

0.052

   
    

(− 2.24)

(− 1.93)

(0.66)

   

BD_PC

      

0.006*

0.004**

0.081****

       

(1.82)

(2.45)

(2.78)

SIZE

 − 0.065***

 − 0.072***

 − 0.032

 − 0.054***

 − 0.069***

 − 0.019

 − 0.045***

 − 0.068***

 − 0.019

 

(− 3.42)

(− 6.12)

(− 1.03)

(− 5.98)

(− 5.84)

(− 0.88)

(− 3.97)

(− 4.87)

(− 0.74)

CAR

 − 0.095**

 − 0.179***

0.101

 − 0.089**

 − 0.17***

0.105

 − 0.093**

 − 0.171***

0.101

 

(− 2.02)

(− 5.84)

(0.57)

(− 2.22)

(− 5.39)

(0.57)

(− 2.31)

(− 5.35)

(0.55)

CRD_RQ

 − 0.034

 − 0.099***

 − 0.251

 − 0.032

 − 0.094***

 − 0.232

0.031

 − 0.098***

 − 0.266

 

(− 1.08)

(− 0.94)

(− 0.56)

(− 0.92)

(− 0.89)

(− 0.51)

(1.11)

(1.07)

(− 0.63)

PROF

0.289***

0.007

0.357***

0.29***

0.007

0.361***

0.295***

0.007

0.355***

 

(3.96)

(0.86)

(9.58)

(3.22)

(0.94)

(9.69)

(3.14)

(0.86)

(6.59)

BAN_CON

 − 0.004

0.001

 − 0.001

 − 0.001

0.003

 − 0.001

0.002

0.001

 − 0.001

 

(− 0.07)

(1.31)

(− 0.44)

(− 0.25)

(1.21)

(− 0.24)

(1.19)

(1.26)

(− 0.47)

DOM_CR

0.001*

0.001***

0.002*

0.003*

0.001***

0.002*

0.002

0.001***

0.002*

 

(1.73)

(3.72)

(1.82)

(1.73)

(3.58)

(1.84)

1.64

(3.71)

(1.82)

GDP_GR

0.001

0.002

0.012**

0.002

0.003

0.013**

0.002

0.001

0.013**

 

(0.89)

(0.43)

(2.12)

(1.15)

(0.49)

(2.32)

(1.10)

(0.54)

(2.35)

INF

 − 0.392*

 − 0.296**

 − 0.865

 − 0.333*

 − 0.273**

 − 0.583

 − 0.314

 − 0.284**

 − 0.591

 

(− 1.89)

(− 2.15)

(− 1.07)

(− 1.69)

(− 2.06)

(− 0.76)

(− 1.59)

(− 2.14)

(− 0.78)

POL_RISK

 − 0.263**

 − 0.036

' − 0.06

 − 0.28**

 − 0.001

 − 0.077

 − 0.284**

 − 0.017

 − 0.161

 

(− 2.25)

(− 0.28)

(− 1.18)

(− 2.30)

(− 0.01)

(− 1.21)

(− 2.33)

(− 0.13)

(− 1.31)

WEPU

 − 0.067***

 − 0.031*

0.028

− 0.078***

 − 0.025*

0.032

 − 0.069***

 − 0.029*

0.053

 

(− 3.32)

(− 1.68)

(0.35)

(− 3.42)

(− 1.66)

(0.43)

(− 3.40)

(− 1.78)

(0.63)

PAND_CRIS

 − 0.016**

 − 0.006***

 − 0.005**

 − 0.017**

 − 0.005**

 − 0.001***

 − 0.012**

 − 0.005**

 − 0.001***

 

(− 2.56)

(− 2.36)

(− 2.12)

(− 2.25)

(− 2.42)

(− 3.11)

(− 2.51)

(− 2.39)

(− 2.95)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Country dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Panel B: Republican countries

A_PC

 − 0.018***

 − 0.003***

 − 0.011

      
 

(− 3.15)

(− 3.52)

(− 1.31)

      

CEO_PC

   

 − 0.018**

 − 0.002**

 − 0.053

   
    

(− 2.24)

(− 2.06)

(− 1.59)

   

BD_PC

      

 − 0.019***

 − 0.013**

0.001

       

(*3.71)

(− 2.45)

(0.11)

SIZE

 − 0.058***

 − 0.048***

− 0.08***

 − 0.08***

 − 0.048***

 − 0.058***

 − 0.081***

 − 0.045***

 − 0.058***

 

(− 4.21)

(− 3.88)

(− 5.73)

(− 5.88)

(− 4.55)

(− 5.11)

(− 4.88)

(− 5.39)

(− 5.85)

CAR

 − 0.109*

 − 0.177***

 − 0.279**

 − 0.123*

 − 0.174***

 − 0.295**

 − 0.087

 − 0.171***

− 0.296**

 

(− 1.97)

(− 3.07)

(− 2.11)

(− 1.87)

(− 3.98)

(− 2.21)

(− 1.94)

(− 8.41)

(− 1.98)

CRD_RQ

− 0.158**

− 0.231***

− 0.725**

− 0.159**

− 0.232***

− 0.763***

− 0.115*

− 0.254***

− 0.684***

 

(− 2.22)

(− 6.33)

(− 3.98)

(− 2.29)

(− 7.02)

(− 4.67)

(− 1.72)

(−  − 7.96)

(− 4.26)

PROF

0.293***

0.008

0.512***

0.291***

0.008

0.495***

0.282***

0.009*

0.511***

 

(3.17)

(1.56)

(5.23)

(4.52)

(1.51)

(4.58)

(3.06)

(1.79)

(5.45)

BAN_CON

0.002

 − 0.003

0.005

0.002

 − 0.003

0.005

0.002

 − 0.004

0.005

 

(0.93)

(− 0.34)

(0.73)

(1.04)

(− 0.20)

(0.76)

(1.10)

(− 0.42)

(0.75)

DOM_CR

0.001**

0.002

0.001

0.001**

0.003

0.001

0.001**

 − 0.002

0.001

 

(2.16)

(0.01)

(0.55)

(2.44)

(0.12)

(0.62)

(2.54)

(− 0.24)

(0.61)

GDP_GR

0.004

0.002

0.018

0.003

0.002

0.017

0.003

0.002

0.017

 

(0.68)

(0.99)

(1.32)

(0.54)

(0.90)

(1.26)

(0.51)

(1.27)

(1.29)

INF

 − 0.007

 − 0.006

0.328*

− 0.014

 − 0.008

0.301*

− 0.007

 − 0.009

0.327*

 

(− 0.12)

(− 0.26)

(1.91)

 − 0.24

(− 0.37)

(1.85)

(− 0.13)

(− 0.40)

(1.91)

POL_RISK

0.002

 − 0.004

 − 0.111

 − 0.004

 − 0.004

 − 0.121

 − 0.005

 − 0.003

 − 0.115

 

(0.05)

(− 0.31)

(− 1.18)

(− 0.12)

(− 0.29)

(− 1.30)

(− 0.13)

(− 0.26)

(− 1.21)

WEPU

 − 0.033

 − 0.023**

 − 0.141*

 − 0.035

0.0270**

 − 0.143*

 − 0.034

 − 0.027**

 − 0.149*

 

(− 0.89)

(− 2.46)

(− 1.78)

(− 0.95)

(2.31)

(− 1.77)

(− 0.92)

(− 2.46)

(− 1.92)

PAND_CRIS

 − 0.691***

 − 0.109**

0.105**

 − 0.641***

 − 0.103**

 − 0.34**

0.655***

 − 0.107**

0.802**

 

(− 3.64)

(− 2.37)

(2.50)

(− 3.88)

(− 2.31)

(− 2.41)

(− 3.87)

(− 2.45)

(− 2.47)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Country dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

  1. This table reports random effect tobit regression results for the effect of political connections (A_PC, CEO_PC, and BD_PC) on bank efficiency (CE, TE, and AE) over the 2008–2021 period. Panel A presents the results for monarchies (Bahrain, Jordan, Kuwait, Morocco; Oman; Qatar; Saudi Arabia, and U.A.E.) and Panel B reports those for republican countries (Egypt, Lebanon, Tunisia, and Turkey). t− values are in parentheses
  2. ***, **, and * denote 1%, 5%, and 10% significance levels, respectively. See variable definitions in Table 10 in “Appendix”
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