interpret Stata result -- sara --

[sara alnusair]

PERFit= [IMG]file:///C:/Users/Lenovo/AppData/Local/Temp/msohtmlclip1/01/clip_image002.png[/IMG]₀ + [IMG]file:///C:/Users/Lenovo/AppData/Local/Temp/msohtmlclip1/01/clip_image002.png[/IMG]₁ FINNit + [IMG]file:///C:/Users/Lenovo/AppData/Local/Temp/msohtmlclip1/01/clip_image002.png[/IMG]₂ INNit+ [IMG]file:///C:/Users/Lenovo/AppData/Local/Temp/msohtmlclip1/01/clip_image002.png[/IMG]₃ PNNit + [IMG]file:///C:/Users/Lenovo/AppData/Local/Temp/msohtmlclip1/01/clip_image002.png[/IMG]₄ ASETit +Ei_t
The dependent variable is Bank Performance (PFRF) ,Since the study period is only 18 years, the model is made using only 3 Independent variables which include financial innovation (FINN), (INN) institution innovation and, process & product innovation (PPI), and Total asset (ASET) is bank specific variable.

Objectives

1. To examine the Impact of Financial Innovation on U.A.E Bank’s Financial Performance .
2. To examine the impact of Institutional innovations on U.A.E Bank’s Financial Performance.
3. To examine the impact of product & process innovations on U.A.E Bank’s Financial Performance.

ROOT TEST

	LLC (1992, 2002)				IPS (IPS, 1992, 2003)				CIPS (Pesaran, 2007)
	Level		1st Difference		Level		1st Difference		Level		1st Difference
	C	C&T	C	C&T	C	C&T	C	C&T	C	C&T	C	C&T
PERF	1.3703 (0.9147)	0.6054 (0.7275)	4.4390 (1.0000)	9.2442 (1.0000)	0.0981 (0.5391)	0.3750 (0.6462)	-3.9581* (0.0000)	-2.0488** (0.0202)	16.895 (1.000)	16.174 (1.000)	15.994 (1.000)	14.892 (1.000)
PINN	0.375 (0.6462)	-0.0446 (0.4822)	-11.2480 * (0.0000)	-7.8159* (0.0000)	3.3400 (0.9996)	2.2721 (0.9885)	-9.1897* (0.0000)	-7.6154* (0.0000)	16.895 (1.000)	16.174 (1.000)	15.994 (1.000)	14.892 (1.000)
FINN	-.3038*** (0.0962)	-3.9816* (0.0001)	-14.4942* (0.0000)	-11.8948* (0.0000)	0.0284 (0.5113)	-2.5657* (0.0104)	-13.3398* (0.0000)	-11.9988* (0.0000)	16.895 (1.000)	16.174 (1.000)	15.994 (1.000)	14.892 (1.000)
IINN	3.0506 (0.9989)	-0.525 (0.2996)	-11.7024* (0.0000)	-10.1541* (0.0000)	5.7034 (1.0000)	2.1628 (0.9874)	-11.4763* (0.0000)	-9.0918* (0.0000)	16.895 (1.000)	16.174 (1.000)	15.994 (1.000)	14.892 (1.000)
ASET	4.4032 (1.0000)	-0.9254 (0.1774)	-10.3927* (0.0000)	-8.3011* (0.0000)	6.6436 (1.0000)	1.6769 (0.9532)	-9.6569* (0.0000)	-7.3931* (0.0000)	16.895 (1.000)	16.174 (1.000)	15.994 (1.000)	14.892 (1.000)

C= with constant; C&T=with trend. Asterisk *, **, *** denotes significance at least at 1%, 5%, and 10% levels. Where * is at least at 1%, ** is at least at 5%, and *** is at least at 10%. The number between ( ) represents for P- value






cointegration test

Tests	Statistic	Prob.	W.statistic	Prob.
	Pedroni Test
Paneled vstatistic	-0.390479	0.6519	-1.768822	0.9615
Paneled rhostatistic	-0.083471	0.4667	-0.652480	0.2570
Paneled PPstatistic	-3.931047	0.0000*	-4.551863	0.0000*
Paneled ADF statistic	-3.634569	0.0001*	-4.448718	0.0000*
Grouped rho-statistic	1.390907	0.9179
Grouped PPstatistic	-6.079566	0.0000*
Grouped ADFstatistic	-6.267987	0.0000*
	KAO Test
	Statistic	P value
Modified Dickey–Fuller t	-7.2447	0.0000*
Dickey–Fuller t	-5.4553	0.0000*
Augmented Dickey–Fuller t	-8.0725	0.0000*
Unadjusted modified Dickey–Fuller t	-11.9728	0.0000*
Unadjusted Dickey–Fuller t	- 6.6466	0.0000*
	Westerlund(With CSD)
	Statistic	P value
Gt	-3.459	0.000*
Ga	-10.272	0.040*
Pt	-14.296	0.010**
Pa	-11.006	0.040**

Note that * and ** indicate significance level at 1% and 5% respectively





Long-run estimates

Variable	Coefficient	t
PINN	0.0019524	[0.50]
FINN	-0.0058692	[-0.73]
IINN	-0.006407	[-0.27]
ASET	0.0000213	[0.07]**
Constant	14.91228	[9.04]

Table 3: Pooled OLS Asterisk **denotes significance at least at 5% level. The number between [ ] represents T value.

Homogenous slope
Variable	POLS	FEM	REM
Constant	.1010286*** [14.96]	.1078914*** [14.54]	.1046449*** (9.99)
PINN	-.0000442*** [-2.86]	-.0000629*** [-3.77]	-.0000553*** (-3.47)
FINN	.0002275*** [6.44]	.0002285*** [-0.70]	.0002297*** (6.62)
IINN	-0.00000645 [-0.66]	-0.0000071 [-0.34]	-0.0000073 (-0.74)
ASET	-0.000000733 [-0.61]	-0.000000435 [-0.15]	-0.000000497 (-0.41)

*** p<.01, ** p<.05, * p<.1. Numbers in [ ] represent the t-value, and ( ) represents the z-value.





Test for FEM and RE model

	Pesaran		Frees		Freidman
	CD	p-value	CD (Q)	p-value	CD	p-value
RE model	2.136	0.0326***	4.330	0.0000***	56.710	0.0000***
FE model	0.865	0.3871	4.347	0.0000***	44.408	0.0000***

Table 4: Test for FEM and RE model Note RE & FE denote Random & Fixed effect model. *** indicate statistical significance at 1% level.





MG, CCEMG, and AMG estimator results

Long run impact
	MG	CCEMG	AMG
PINN	-.0412626** (.0383531)	-.0507837** (.0480735)	.0000341** (.0000503)
FINN	-.0218667** (.033063)	.0546049** (.0607005)	.0008172** (.0001753)
IINN	.0050856** (.0044085)	.0063939* (.0045361)	-.0000844* (.0000578)
ASET	.0006229** (.0006746)	.0007963* (.0005511)	6.45e-07** (2.53e-06)
Trends	-.2125749 (.4575444)	-.1861826 (1.119957)	.0005448** (2.53e-06)
Constant	9.436383 (2.471932)	6.066602 (4.1351)	.1225824** (.0115819)

Table 5: MG, CCEMG, and AMG estimator results. Asterisk *, **, and *** denotes significance at least at 1%, 5%, and 10% levels, respectively. a number between () represent P- value,







Testing for Cross Section Dependence

MG		CCEMG		AMG
CD	p-value	CD	p-value	CD	p-value
3.99***	0.0000	0.01*	0.091	2.60***	(0.009)

CD denotes Testing for Cross Section Dependence. Note: Asterisks ***, **,* denote significance at least 1 percent, 5 percent, and 10 percent levels, respectively