Table 7.

Robustness test results using the system GMM method.

Dependent variables	Z-score		1/NPL		Z-score		1/NPL
	(1)		(2)		(3)		(4)
	Co.eff	t.stat	Co.eff	t.stat	Co.eff	t.stat	Co.eff	t.stat
Lag(SB)	0.887∗∗∗	13.35	0.909∗∗∗	11.25	0.952∗∗∗	20.52	0.899∗∗∗	17.15
LIMS	0.398∗∗	1.95	0.007	1.34
LIMG					0.672∗	1.86	0.028∗∗∗	2.61
LIMG2					−2.329∗∗∗	−2.43	−0.584∗∗	−2.15
HHI	2.377∗	1.70	0.033	0.54	3.010∗∗∗	2.33	0.059	1.12
BCON	0.008	0.69	0.000	0.20	0.006	0.70	0.000	−0.11
GDP	−0.120	−0.71	0.002	0.23	−0.187	−1.21	0.002	0.21
PPG	−0.018	−0.14	−0.010∗	−1.77	−0.072	−0.72	−0.007	−1.39
CISH	0.121∗∗∗	3.31	0.001	1.52	0.115∗∗∗	3.67	0.001∗∗	1.90
LER	0.061	0.83	−0.004	−0.91	0.020	0.29	−0.006	−1.04
WGI	0.287∗∗	1.91	0.008∗	1.76	0.113∗∗∗	2.48	0.010	1.60
NII	−0.009∗∗	−1.90	−0.002∗∗∗	−3.31	0.007	0.78	−0.002∗∗∗	−3.37
Cons	0.545	0.31	0.107	1.07	0.613	0.33	0.135	1.21
Observation	473		343		473		343
Instrument	30		30		30		30
AR(2)-p.value	0.782		0.311		0.681		0.564
Hansen J-p.value	0.436		0.236		0.408		0.450

Note: This table reports the system GMM estimation results for Equations (1), (2)) using the Z-score and 1/NPL as dependent variables. Regressions 1–2 and 3–4 show the results for Equations (1), (2)), respectively. Lag (BS) is the one-year lag of dependent variables. ∗, ∗∗, and ∗∗∗ indicate statistical significance at the 10 %, 5 %, and 1 % levels, respectively. All variables are defined in Appendix A.