Table 6.
Results for risk governance structure and bank risk management.
| RGV |
ASIZE |
ACIN |
FAEA |
ACMF |
SARC |
EXAQ |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|||||||
| Dependent variable: ROA | Coeff | t-stat | Coeff | t-stat | Coeff | t-stat | Coeff | t-stat | Coeff | t-stat | Coeff | t-stat |
| Lag (ROA) | −0.62∗∗∗ | −4.96 | 0.39∗∗ | 2.50 | −1.84∗∗∗ | −3.93 | −2.36∗∗∗ | −13.82 | −2.31∗∗∗ | −15.55 | −1.72∗∗∗ | −7.07 |
| Zscore | −0.00 | −0.48 | 0.00 | 1.10 | −0.00 | −1.61 | 0.00 | 0.07 | 0.00∗∗ | 2.58 | 0.00∗ | 1.78 |
| NPLS | 0.58∗∗ | 2.19 | 0.08∗∗ | 2.58 | −0.68∗ | −1.84 | 0.07 | 0.35 | 0.05 | 0.24 | 0.21 | 0.63 |
| DROA | −13.65∗∗∗ | −4.27 | −0.99∗∗∗ | −2.64 | −0.41 | −0.32 | −1.27∗∗∗ | −2.90 | −4.17∗ | −1.74 | −4.05∗∗∗ | −5.47 |
| Zscore∗RGV | −0.00 | −0.87 | −0.00 | −1.71 | 0.00 | 1.57 | 0.00 | 0.13 | −0.00∗∗∗ | −2.62 | −0.00∗ | −1.78 |
| NPLS∗RGV | −0.16∗∗ | −2.43 | 0.02 | 0.27 | 0.96∗ | 1.68 | −0.01 | −0.40 | −0.05 | −0.21 | −0.02 | −0.06 |
| DROA∗RGV | 2.54∗∗∗ | 2.79 | 0.77∗∗ | 2.18 | −1.62 | −0.61 | −0.01 | −0.10 | 2.90 | 1.24 | 1.97 | 0.74 |
| BASI | −0.01 | −0.96 | 0.00 | 0.65 | 0.01 | 0.51 | 0.00 | 0.04 | 0.01 | 1.04 | 0.02 | 1.61 |
| BOSI | 0.00 | 0.83 | 0.00 | 1.22 | 0.00 | 0.34 | 0.00 | 1.58 | 0.01∗∗ | 1.99 | 0.00 | −0.88 |
| BOIN | 0.04 | 1.26 | 0.01∗∗ | 2.35 | 0.10 | 1.08 | 0.04 | 1.15 | 0.06 | 1.33 | 0.11∗∗ | 2.00 |
| BAAG | −0.00 | −0.26 | −0.00 | −0.10 | 0.00 | 0.39 | −0.00 | −0.51 | −0.00 | −1.61 | −0.00 | −1.57 |
| SOWN | −0.02 | −0.61 | −0.00∗ | −1.65 | −0.08 | −1.24 | −0.03 | −1.21 | −0.03 | −1.08 | 0.01 | 0.31 |
| FOWN | −0.02 | −0.38 | −0.01 | −2.18 | 0.07 | 1.17 | −0.01 | −0.95 | −0.01 | −0.58 | 0.00 | 0.18 |
| GDPC | −0.02 | −0.74 | −0.01∗ | −1.91 | −0.08 | −1.55 | −0.03 | −1.49 | −0.05∗∗ | −2.26 | −0.04 | −1.55 |
| CONC | 0.01 | 0.35 | 0.00 | 0.87 | 0.00 | 0.11 | −0.00 | −1.42 | −0.00 | −0.51 | −0.01 | −0.65 |
| Cons | 0.23∗∗∗ | 2.95 | 0.03 | 1.57 | 0.21 | 1.38 | 0.12∗∗ | 2.56 | 0.08 | 1.10 | 0.03 | 0.24 |
| AR2 (p-value) | 0.299 | 0.335 | 0.289 | 0.262 | 0.251 | 0.284 | ||||||
| Hansen test (p-value) | 0.101 | 0.235 | 0.216 | 0.101 | 0.140 | 0.377 | ||||||
| No of instrument | 64 | 81 | 79 | 67 | 60 | 63 | ||||||
| Obs | 1101 | 1069 | 1069 | 1049 | 1101 | 1101 | ||||||
Note: this table presents the results of the estimates of Eq. (2) by applying the system GMM approach for the dependent variable ROA. Regressions 1 to 7 present estimations for each risk governance structure variable with risk governance effectiveness used as an interaction variable. These include audit committee size (1), audit committee independence (2), number of financial and accounting experts on the audit committee (3), audit committee meeting frequency (4), risk committee existence (5), external audit quality (6), and risk governance effectiveness (7), respectively. RGV represents for each risk governance structure and the risk governance effectiveness for each regression. See Table 3 for variable definitions. ∗∗∗p < 0.1, ∗∗p < 0.05 and ∗∗∗p < 0.001.