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Variable Obs Mean Std. Dev. Min Max

LS 563 0.8447 0.2405 0.0586 3.3382

GDPG 563 2.8512 2.2097 0.1 9.8

INFLATION 563 2.5817 1.6540 -1.61 8.48

Source: Authors’ compilation from analysis data with Stata 17
The main variables show considerable dispersion across banks and countries. Bank
stability (LN1ZSCORE) varies substantially, indicating heterogeneity in financial stability
within the sample. ESG scores also display wide variation, suggesting uneven adoption of
ESG practices among banks. Likewise, CORRUPTION differs markedly across countries,
reflecting cross-country differences in institutional quality.
Among the control variables, bank-specific characteristics and macroeconomic
conditions also vary across observations. Overall, the descriptive statistics confirm that
the dataset contains adequate variation to support the subsequent empirical analysis.
Table 2. Pearson’s Pairwise Correlation
Variable (1) (2) (3) (4) (5) (6) (7) (8) (9)

(1) 1
LN1ZSCOR
E

(2) 0.2447 1
ESG (0)

(3) 0.2443 -0.2308 1
CORRUPTI (0) (0)
ON

(4) 0.2958 0.3348 0.3236 1
LN_TA (0) (0) (0)

(5) -0.2499 0.0468 -0.3752 -0.4524 1
EA (0) (0.2676) (0) (0)

(6) -0.3645 -0.2283 0.2175 -0.2929 0.1625 1
EFFR (0) (0) (0) (0) (0.0001)

(7) -0.0698 -0.2087 0.1266 -0.1951 0.0136 0.1056 1
LS (0.0982) (0) (0.0026) (0) (0.7480) (0.0122)

(8) -0.0577 0.2361 -0.5862 -0.1469 0.2752 -0.2721 -0.1395 1
GDPG (0.1719) (0) (0) (0.0005) (0) (0) (0.0009)

(9) 0.0717 0.2319 -0.2392 -0.030 0.0902 -0.1059 -0.0589 0.1643 1
INFLATION (0.0891) (0) (0) (0.5863) (0.0323) (0.0119) (0.1629) (0.0001)
Source: Authors’ compilation from analysis data with Stata 17
Table 2 presents the Pearson pairwise correlations among the variables. Bank
stability (LN1ZSCORE) is positively correlated with ESG, CORRUPTION, and bank size
(LN_TA), while it is negatively correlated with EA and, most notably, EFFR. Among these

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