| Dependent Variable | 1=BOPEC rating downgrade 2=BOPEC no rating change 3=BOPEC rating upgrade |
| Size of Institution | |
| Natural logarithm of total assets | LN_ASSET |
| Past Supervisory Variables | |
| Dummy Variable: BOPEC rating of 1 before most recent inspection | BOPEC-1 |
| Dummy Variable: BOPEC rating of 2 before most recent inspection | BOPEC-2 |
| Dummy Variable: BOPEC rating of 3 before most recent inspection | BOPEC-3 |
| Dummy Variable: BOPEC rating of 4 before most recent inspection | BOPEC-4 |
| Dummy Variable: CAMELS rating of lead bank before current inspection: 1 = prior rating of 3, 4, 5; 0 = 1 or 2 rating | PROB_BK |
| Time from prior holding company inspection to current inspection (days) | INSP_AGE |
| Financial Accounting Variables (percent) | |
| Equity/Total Assets | EQ_ASSET |
| Loans Past Due 90 days/Total Assets | PD90_ASSET |
| Nonaccrual Loans/Total Assets | NA_ASSET |
| Loan-Loss Reserves/Total Assets | LLR_ASSET |
| Loan-Loss Provisons/Total Assets | LPROV_ASSET |
| Charge-offs/Total Assets | CHARG_ASSET |
| Annual Return on Assets | ROA |
| Liquid Assets/Total Assets | LIQ_ASSET |
| Time Deposits>$100,000/Total Assets | TD100_ASSET |
| Financial Market Variables | |
| Coefficient of Variation of Price (%) | COVAR_PRICE |
| Abnormal or Excess Quarterly Returns (value weighted) (%) | EX_RETURN |
| Std. Deviation of Quarterly Returns (%) | STD_RETURN |
| Market Value of Firm/Book Value of Firm | MKT_BK |
| Quarterly Turnover of Shares (%) | TURNOVER |
Periods |
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|
1988–1992 |
1993–1995 |
1996–2000 |
||||
Mean |
Std. Deviation |
Mean |
Std. Deviation |
Mean |
Std. Deviation |
|
| Institution Size |
||||||
| LN_ASSET |
14.81 |
1.63 |
14.79 |
1.86 |
14.67 |
1.94 |
Past Supervisory Variables |
||||||
| BOPEC-1 |
0.19 |
0.39 |
0.23 |
0.42 |
0.44 |
0.49 |
| BOPEC-2 |
0.46 |
0.49 |
0.48 |
0.50 |
0.52 |
0.49 |
| BOPEC-3 |
0.21 |
0.41 |
0.16 |
0.37 |
0.03 |
0.18 |
| BOPEC-4 |
0.11 |
0.31 |
0.12 |
0.32 |
0.01 |
0.07 |
| PROB_BK |
0.39 |
0.48 |
0.28 |
0.45 |
0.05 |
0.21 |
| INSP_AGE |
453.11 |
289.12 |
471.96 |
309.79 |
506.82 |
299.24 |
| Financial Accounting Variables |
||||||
| EQ_ASSET |
6.65 |
2.12 |
8.12 |
1.77 |
8.66 |
2.21 |
| PD90_ASSET |
0.35 |
0.49 |
0.19 |
0.25 |
0.14 |
0.18 |
| NA_ASSET |
1.69 |
1.82 |
1.08 |
1.28 |
0.40 |
0.40 |
| LLR_ASSET |
1.42 |
0.89 |
1.39 |
0.74 |
0.95 |
0.36 |
| LPROV_ASSET |
0.51 |
0.74 |
0.27 |
0.49 |
0.17 |
0.25 |
| CHARG_ASSET |
0.51 |
0.63 |
0.37 |
0.51 |
0.18 |
0.27 |
| ROA |
0.36 |
1.41 |
0.89 |
0.98 |
1.13 |
0.51 |
| LIQ_ASSET |
7.23 |
3.78 |
19.87 |
14.76 |
28.58 |
10.61 |
| TD100_ASSET |
10.45 |
5.79 |
6.23 |
4.46 |
9.76 |
6.06 |
| Financial Market Variables |
||||||
| COVAR_PRICE |
7.12 |
6.40 |
5.19 |
4.12 |
6.18 |
6.17 |
| EX_RETURN |
–0.01 |
0.22 |
0.02 |
0.17 |
–0.01 |
0.18 |
| STD_RETURN |
0.03 |
0.03 |
0.03 |
0.02 |
0.02 |
0.01 |
| MKT_BK |
1.05 |
1.32 |
1.37 |
0.48 |
2.07 |
0.96 |
| TURNOVER |
12.21 |
13.12 |
12.95 |
12.67 |
11.35 |
13.18 |
| Number of Observations |
1,295 |
787 |
1,452 |
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