Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective

Financial Innovation

Table 4 Regression analysis (n = 3,289)

Variable	Coefficient	Standard Error	t-statistic	Prob
Intercept	0.395	0.0226	17.5403	< 0.001
Capital adequacy ratio (C)	− 0.499	0.1681	− 2.9715	0.003
Asset quality ratio (A)	− 2.252	0.3989	− 5.6474	< 0.001
Management quality ratio (M)	2.371	0.4030	5.8838	< 0.001
Earnings ability ratio (E)	3.270	0.6641	4.9241	< 0.001
Liquidity ratio (L)	1.028	0.0807	12.7253	< 0.001
Adjusted R-squared	0.086
F-statistic	62.564***

This table reports the ordinary least square results with dependent variable being overall efficiency and explanatory variables as the CAMEL ratings. The standard errors are derived after adjusting according to White heteroskedasticity-consistent standard errors & covariance. That is, \(OE_{it} = \beta_{1} + \beta_{2} C_{it} + \beta_{3} A_{it} + \beta_{4} M_{it} + \beta_{5} E_{it} + \beta_{6} L_{it} + \beta_{6} \varepsilon_{it}\) where i represents bank, t represents time, and ε is the error term