Skip to main content
Financial Innovation

Table 7 Additional test: Crisis periods vs. noncrisis period

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: 2008–2009 subperiod (financial crisis period)

A_PC

 − 0.006

 − 0.006*

 − 0.024

      
 

(− 1.42)

(− 1.85)

(− 1.08)

      

CEO_PC

   

 − 0.006*

 − 0.015

 − 0.045

   
    

(− 1.85)

(− 0.86)

(−  1.60)

   

BD_PC

      

 − 0.033*

 − 0.004

 − 0.006

       

(− 1.86)

(− 0.85)

(− 0.34)

SIZE

0.064***

0.052***

0.113***

0.056***

0.049***

0.114***

0.054***

0.046***

0.114***

 

(7.98)

(3.71)

(3.70)

(6.66)

(3.28)

(3.92)

(7.87)

(3.45)

(3.45)

CAR

 − 0.037***

 − 0.073

0.09

 − 0.037***

 − 0.068

0.095

− 0.036***

 − 0.075

0.09

 

(− 5.49)

(− 1.32)

(1.33)

(− 5.52)

(− 1.23)

(1.40)

(− 5.35)

(− 1.36)

(1.32)

CRD_RQ

0.019**

 − 0.063

− 0.228***

0.019**

 − 0.063

− 0.223***

0.02**

 − 0.066

− 0.231***

 

(1.97)

(− 1.51)

(− 2.62)

(1.97)

(− 1.50)

(− 2.58)

(2.05)

(− 1.59)

(− 2.62)

PROF

0.116*

 − 0.064

0.245*

0.127*

0.01

0.459**

0.12*

 − 0.095

0.25*

 

(1.69)

(− 0.17)

(1.91)

(1.84)

(0.03)

(2.21)

(1.71)

(− 0.24)

(1.88)

BAN_CON

0.001

0.001

0.002

0.001

0.001

0.002

0.001

0.001

0.002

 

(0.17)

(0.97)

(1.54)

(0.10)

(0.90)

(1.44)

(0.32)

(0.93)

(1.56)

DOM_CR

 − 0.002**

0.001

 − 0.001

 − 0.001**

0.001

 − 0.001

 − 0.002**

0.001

 − 0.001

 

(− 2.41)

(0.45)

(− 1.06)

(− 2.42)

(0.35)

(− 1.27)

(− 2.45)

(0.40)

(− 1.12)

GDP_GR

 − 0.001

0.002

 − 0.002

 − 0.003

0.002

 − 0.002

 − 0.003

0.002

 − 0.002

 

(− 1.05)

(0.84)

(− 0.84)

(− 1.30)

(0.88)

(− 0.89)

(− 1.08)

(0.82)

(− 0.88)

INF

 − 0.058*

 − 0.213

 − 0.872**

 − 0.057*

 − 0.217

 − 0.83**

 − 0.059*

 − 0.223

 − 0.872**

 

(− 1.86)

(− 0.82)

(− 2.50)

(− 1.84)

(− 0.91)

(− 2.37)

(− 1.95)

(− 0.87)

(− 2.50)

POL_RISK

0.002

0.153

0.423*

0.005

0.15

0.416*

0.005

0.165

0.455*

 

(0.06)

(1.12)

(1.77)

(0.18)

(1.10)

(1.85)

(0.18)

(1.21)

(1.91)

WEPU

0.006

0.002

 − 0.036

0.006

0.004

 − 0.031

0.005

0.002

 − 0.041

 

(1.28)

(0.06)

(− 0.72)

(1.38)

(0.09)

(− 0.63)

(1.16)

(0.05)

(− 0.82)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Country dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Panel B: 2010–2019 subperiod (noncrisis period)

A_PC

 − 0.005***

 − 0.009**

− 0.054*

      
 

(− 2.61)

(− 2.36)

(− 1.92)

      

CEO_PC

   

 − 0.001***

 − 0.001***

0.049

   
    

(− 3.15)

(− 3.17)

(0.85)

   

BD_PC

      

 − 0.016***

 − 0.003**

0.009

       

(− 2.71)

(− 2.39)

(0.39)

SIZE

 − 0.069***

 − 0.068***

 − 0.041***

 − 0.069***

 − 0.068***

 − 0.041***

 − 0.069

 − 0.068***

 − 0.04***

 

(− 3.26)

(− 3.14)

(− 2.80)

(− 3.69)

(− 3.89)

(− 2.86)

(− 3.86)

(− 3.08)

(− 2.88)

CAR

 − 0.059

 − 0.14***

 − 0.084

 − 0.064*

 − 0.14***

 − 0.08

 − 0.064

 − 0.14***

− 0.081

 

(− 1.51)

(− 8.77)

(− 0.69)

(− 1.69)

(− 9.01)

(− 0.61)

(− 1.74)

(− 8.81)

(− 0.69)

CRD_RQ

0.032

 − 0.058***

 − 0.339**

0.034

 − 0.059***

 − 0.312**

0.041

− 0.048***

 − 0.335**

 

(1.12)

(− 3.51)

(− 2.34)

(1.25)

(− 3.46)

(− 2.36)

(1.22)

(− 3.47)

(− 2.39)

PROF

0.273***

0.002

0.385***

0.263***

0.003

0.382***

0.284

0.005

0.385***

 

(3.09)

(0.48)

(3.24)

(3.32)

(0.33)

(3.31)

(3.41)

(0.35)

(3.30)

BAN_CON

 − 0.003

 − 0.003

 − 0.001

 − 0.003

 − 0.003

 − 0.003

 − 0.005

 − 0.006

 − 0.007

 

(− 0.39)

(− 0.26)

(− 1.11)

(− 0.59)

(− 0.46)

(− 0.81)

(− 0.41)

(− 0.19)

(− 1.22)

DOM_CR

0.001

0.002***

0.001

0.002*

0.003***

0.002

0.002*

0.005***

0.002

 

(1.59)

(4.56)

(0.58)

(1.75)

(4.48)

(0.52)

(1.75)

(4.46)

(0.56)

GDP_GR

0.008***

0.001

0.02***

0.008***

0.001

0.021***

0.008

0.001

0.021***

 

(3.70)

(0.46)

(3.01)

(3.81)

(0.56)

(3.18)

(3.79)

(0.57)

(3.20)

INF

 − 0.355***

0.076***

0.359

 − 0.354***

0.07**

0.389

 − 0.362

0.07***

0.394

 

(− 3.29)

(2.73)

(0.97)

(− 3.35)

(2.56)

(1.07)

(− 3.40)

(2.58)

(1.08)

POL_RISK

 − 0.195**

0.014

 − 0.121

 − 0.193**

0.026

 − 0.203**

 − 0.191

0.026

 − 0.246**

 

(− 1.98)

(0.24)

(− 2.15)

(− 1.97)

(0.46)

(− 2.35)

(− 1.97)

(0.46)

(− 2.44)

WEPU

 − 0.022

 − 0.023

0.031

 − 0.021

 − 0.028

0.029

 − 0.024

 − 0.001

0.04

 

(− 1.10)

(− 0.92)

(0.46)

(− 1.06)

(− 0.07)

(0.44)

(− 1.16)

(− 0.11)

(0.46)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Country dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Panel C: 2020–2021 subperiod (pandemic crisis period)

A_PC

 − 0.063***

 − 0.036***

 − 0.095***

      
 

(− 5.15)

(− 5.26)

(− 3.41)

      

CEO_PC

   

 − 0.029***

 − 0.021***

 − 0.025***

   
    

(− 3.02)

(− 2.79)

(− 2.34)

   

BD_PC

      

 − 0.025**

 − 0.029**

 − 0.016*

       

(− 2.11)

(− 2.08)

(− 1.88)

SIZE

0.061***

0.069***

 − 0.065***

0.067***

0.061***

0.059**

0.068***

0.062***

0.043**

 

(5.23)

(4.12)

(− 1.09)

(5.00)

(4.10)

(2.17)

(5.31)

(4.30)

(2.17)

CAR

 − 0.052***

− 0.216***

 − 0.083

 − 0.052***

 − 0.236***

 − 0.613*

− 0.056***

 − 0.211***

 − 0.511*

 

(− 3.30)

(− 8.01)

(− 1.37)

(− 3.51)

(− 8.15)

(− 1.97)

(− 3.24)

(− 8.02)

(− 1.86)

CRD_RQ

0.019

 − 0.217***

− 0.254***

0.007

 − 0.215***

 − 0.619***

0.008

 − 0.211***

− 0.611***

 

(0.44)

(− 6.36)

(− 2.60)

(0.27)

(− 6.41)

(− 3.97)

(0.40)

(− 6.49)

(− 4.03)

PROF

0.335**

0.411**

0.324**

0.338**

0.433**

0.015

0.337**

0.395**

0.845

 

(2.45)

(2.00)

(2.15)

(2.41)

(2.17)

(1.16)

(2.51)

(1.97)

(1.12)

BAN_CON

 − 0.003

 − 0.001***

 − 0.002

 − 0.005

 − 0.001***

 − 0.006**

0.001

− 0.001***

− 0.006***

 

(− 0.89)

(− 3.21)

(− 0.81)

(− 0.69)

(− 3.27)

(− 2.41)

(− 0.65)

(− 3.12)

(− 2.71)

DOM_CR

 − 0.0001

0.001*

 − 0.003

 − 0.0001

0.001

 − 0.002

 − 0.003

0.001*

 − 0.002

 

(− 0.84)

(1.77)

(− 0.96)

(− 0.73)

(1.56)

(− 0.71)

(− 0.53)

(1.81)

(− 0.59)

GDP_GR

 − 0.001

0.003**

 − 0.008

 − 0.001

0.003*

 − 0.015

 − 0.001

0.003

 − 0.017

 

(− 0.986)

(2.19)

(− 0.69)

(− 0.77)

(1.77)

(− 1.06)

(− 0.67)

(2.11)

(− 0.97)

INF

0.312

 − 0.578***

 − 0.701

0.165

 − 0.501***

 − 0.261

0.142

 − 0.623

 − 0.221

 

(0.64)

(− 3.44)

(− 0.89)

(0.29)

(− 3.29)

(− 0.35)

(0.26)

(− 3.74)

(− 0.27)

POL_RISK

 − 0.221

 − 0.317

0.733

 − 0.252

 − 0.341*

0.559

 − 0.211

 − 0.368

0.641

 

(− 1.11)

(− 1.56)

(0.47)

(− 1.18)

(− 1.69)

(0.42)

(− 1.04)

(− 1.51)

(0.48)

WEPU

0.078

 − 0.314***

 − 0.89

0.038

 − 0.3***

 − 0.175

.039

− 0.328***

 − 0.137

 

(0.69)

(− 3.31)

(− 0.71)

(0.31)

(− 3.21)

(− 0.63)

(0.32)

(− 3.63)

(− 0.52)

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 the 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). Panel A presents the results for the 2008–2009 subperiod, Panel B for the 2010–2019 subperiod, and Panel C for the 2020–2021 subperiod. t-values are in parentheses
  2. ***, **, and * denote 1%, 5%, and 10% significance levels, respectively. See variable definitions in Table 10 in “Appendix”
Back to article page