Competition and bank profitability

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 8 Regression result for HHI and profitability relationship for each BUKU.

Dependent var:	BUKU 1		BUKU 2		BUKU 3		BUKU 4
ROA	Coef	P value	Coef	P value	Coef	P value	Coef	P value
Independent var
CI	− 0.108	0.000	− 0.032	0.073	− 0.048	0.000	− 0.013	0.098
NPL	− 0.045	0.009	− 0.080	0.000	− 0.098	0.001	− 0.083	0.331
HHIownership	− 3.79E−05	0.151	2.30E−05	0.588	0.000	0.004	− 2.16E−04	0.002
Eqta	0.880	0.317	4.630	0.196	8.085	0.003	1.844	0.733
DBClass	− 0.129	0.269	− 0.706	0.002	− 0.373	0.002	0.366	0.254
constant	23.281	0.001	− 13.509	0.321	5.062	0.568	− 0.398	0.876
HHI	− 0.035	0.060	0.047	0.183	0.001	0.977	0.013	0.079
HHI 2	− 2.97E−05	0.047	− 2.97E−06	0.214	− 8.47E−07	0.957	− 7.26E−06	0.091
R Sq	0.750		0.425		0.523		0.535
No of observation	580		312		286		56
Number of sample	43		25		22		4

BUKU is bank classification based on Indonesia Financial Services Authority regulation. BUKU 1 is the smallest bank group that has limited bank business activities, and BUKU 4 is the biggest bank group that has full banking business license