El cuestionario de la entrevista

7.3.2.1 Results of independent variables

From Table 15, consistent with the results of the main model, the result of board size shows statistically insignificant under 2SLS model but this became 5% significant under OLS and 2SLS models. Consistent with the result of the main model, the direction of coefficient on board size remains negative under fixed effect model but this became positive under OLS and 2SLS models. The direction of coefficient on female directors has not changed. Specifically, the negative coefficient on female directors of the main model remains negative under OLS, fixed effect and 2SLS models. However, the level of significance level of female directors which was 1% significant under the main model is now insignificant under OLS, fixed effect and 2SLS models. The direction of coefficient on independent directors which was positive is now negative based on OLS, fixed effect and 2SLS models. However, the level of significance level of the main result of independent directors shows similar direction. Specifically and consistent with the result of the main model, board independence is insignificantly related to bank risk under OLS, fixed effect and 2SLS models. Duality which is significantly related to bank risk at 1% significance level under the main model in now 10% under fixed effect model and insignificant under OLS and 2SLS models. The direction of coefficient on duality which is negative under the main model has not changed apart from the result of fixed effect model which is now positive. The direction of coefficient on board meetings which is negative under the main model has not changed based on OLS, fixed effect and 2SLS models. The direction of significance level of the coefficient on board meetings under the main model which was 1% is now insignificant under OLS, fixed effect and 2SLS models.

163 7.3.2.2 Results of control variables

These results are presented in table 15. Consistent with the results of the main model, the direction of coefficient on bank size has not changed. In particular, the positive impact of bank size on bank risk under the main model remains the same under OLS, fixed effect and 2SLS models. Consistent with the results of the main model, the direction of significance level shows similar level under OLS and 2SLS models apart from fixed effect model which became insignificant. Equity to asset ratio shows negative impact on bank risk under the main model but this changed to positive under OLS, fixed effect and 2SLS models. The direction of significance level of equity to assets ratio which was 1% significance based on the main model is now 5%, 10% and insignificant based on OLS, 2SLS and fixed effect models respectively. Consistent with the result of the main model, the direction of coefficient on net loans to assets ratio remains positive under OLS, fixed effect and 2SLS models. However, 1% significance level of the result of net loans to assets ratio under the main model is now 5% under OLS and 2SLS models and became insignificant under fixed effect model.

Consistent with the main model, the direction of coefficient on cost-to-income ratio remains positive under OLS, fixed effect and 2SLS models. Moreover and consistent with the result of the main model, the impact of cost-to-income ratio remains significant under OLS, fixed effect and 2SLS models. However, the 1% significance level of the result of cost-to-income ratio under the main model remains unchanged under 2SLS model but changed to 5% and 10% under OLS and fixed effect models respectively. Consistent with the result of the main model, control of corruption has negative impact on bank risk under OLS, fixed effect and 2SLS models. However, consistent with the main model, the direction of significance level of the result of control of corruption remains 1% based on OLS model and became 5% and insignificant based on 2SLS and fixed effect models respectively. Consistent with the result of the main model, the direction of coefficient on GDP remains positive under fixed effect model but changed to negative under OLS and 2SLS models. The 1% significance level of the result of GDP based on the main result has not changed under the result of OLS model but became 10% and insignificant based on 2SLS and fixed effect models respectively. Finally, consistent with the result of the main model, the direction of coefficient of the result on financial crisis has not changed and remains negative based on OLS, fixed effect and 2SLS.

However, the 1% significant level of the result of financial crisis under the main model is now insignificant under OLS, fixed effect and 2SLS models.

NB: The reason for the inconsistence of some of the results of the main statistical model, GMM, with some of the results of OLS, fixed effect and 2SLS, may be partly due to the fact that GMM possesses a number of advantages including, resolving the problems of endogeneity, unobserved heterogeneity, autocorrelation and profit persistence, which the other techniques may not be able to resolve.