Table 8.

Results for risk governance effectiveness and bank risk management.

	ROA		ROE
	(1)		(2)
	Coeff	t-stat	Coeff	t-stat
Lag (ROA)/Lag ROE	−1.48∗∗∗	−5.83	0.27	1.09
Zscore	0.00	0.76	0.00	0.34
NPLS	0.04	0.44	1.44∗	1.98
DROA	−6.11∗∗∗	−6.05	−3.30	−0.62
Zscore∗RGEI	−0.00∗	−1.68	−0.00∗∗	−2.47
NPLS∗RGEI	−0.01	−0.55	−0.20	−1.06
DROA∗RGEI	0.64∗∗∗	2.73	0.75∗	1.95
BASI	0.00	0.25	0.06∗∗	2.01
BOSI	0.00	0.62	−0.01	−1.00
BOIN	0.11∗	1.65	−0.02	−0.45
BAAG	−0.00	−0.93	−0.00	−1.37
SOWN	−0.01	−0.58	−0.02	−0.87
FOWN	0.01	0.36	0.03	0.66
GDPC	−0.04	−1.34	−0.01	−0.33
CONC	0.01	0.28	0.01∗∗	2.20
Cons	0.14	1.52	−0.41∗	−1.78
AR2 (p-value)	0.292		0.914
Hansen test (p-value)	0.370		0.349
No of instrument	66		62
Obs	1101		1101

Note: See Table 3 for variable definitions. ∗∗∗p < 0.1, ∗∗p < 0.05 and ∗∗∗p < 0.001.