Panel Data Analysis - Empirical Financial Modelling

Extract

[...] This shows that Business Sentiment Indicator is negatively correlated with total loans. On the other hand, the GDPGrowth variable, in addition to being significant, is positively correlated with total loans. However, R-squared is only 0.010846; which means that our variables only explain a tiny percentage of total loans. This total of loans is therefore largely explained by other variables. Briefly discuss your results and give the conclusion(s). We formulated three initial hypotheses: H1: There is a positive relationship between bank loans and ROAA- not verified H2: There is a negative relationship between bank loans and the business climate dBSI - not verified H3: There is a positive relationship between bank lending and GDP growth - verified According to our model, there is a positive relationship between GDP growth and total bank loans. [...]

[...] (2016) who carried out a study in the Indonesian context and found that this link, although weak, is positive. References Cubillas, E., Ferrer, E., & Suárez, N. (2021). Does investor sentiment affect bank stability? International evidence from lending behavior. Journal of International Money and Finance, 113, 102351. Baum, C.F., Caglayan, M. and Xu, B The impact of uncertainty on financial institutions: A cross-country study. International Journal of Finance & Economics, pp.3719-3739. Caglayan, M., and Xu, B. (2016). Sentiment volatility and bank lending behavior. [...]

[...] Panel Data Analysis - Empirical Financial Modelling Hypothesis Hypothesis : We formulate the following three hypotheses after reading the literature: H1: There is a positive relationship between bank loans and ROAA:. H2: There is a negative relationship between bank loans and the business climate dBSI H3: There is a positive relationship between bank lending and GDP growth Description of the research method I use Concerning the research method to verify our hypotheses, we use two multiple regressions by defining as dependent variable in the first regression, Ln_GL, Logarithmic of total loans. [...]

[...] International Review of Financial Analysis, 45:107-120. Ferri, G., Kalmi, P., and Kerola, E. (2014). Does bank ownership affect lending behavior? evidence from the Euro area. Journal of Banking & Finance, 48:194-209. Ivashina, V., and Scharfstein, D. (2010). Bank lending during the financial crisis of 2008. Journal of Financial Economics, 97(3):319-338. Kim, D., & Sohn, W. (2017). The effect of bank capital on lending: Does liquidity matter? Journal of Banking and Finance 95-107. [...]

[...] https://doi.org/10.1016/j.jbankfin.2017.01.011 Ahmad, M. I., Guohui, W., Hasan, M., Ali, R., Rafiq, M. Y., & Rehman, R. (2016). Non-performing loans and economic growth. Scholars journal of economics, business and management, 3(10), 3-6. Chou, T. K., & Buchdadi, A. D. (2016). Bank performance and its underlying factors: A study of rural banks in Indonesia. Accounting and Finance Research, 5(3), 55-63. [...]