Table 6. Open in new tab Double sort on...

Bank bond share (Total portfolio)
Funding gap	1.38 $^{* * *}$	0.531 $^{* * *}$	0.849 $^{* * *}$	1.15 $^{* * *}$	0.691 $^{* * *}$	0.455 $^{* *}$
	(0.185)	(0.173)	(0.253)	(0.175)	(0.151)	(0.231)
ROA	−0.319 $^{* * *}$	−0.188 $^{* * *}$	−0.132	−0.310 $^{* * *}$	−0.216 $^{* * *}$	−0.093
	(0.016)	(0.014)	(0.021)	(0.015)	(0.012)	(0.019)
Market share	0.004 $^{* *}$	0.002	0.002	0.005 $^{* * *}$	0.001	0.004
	(0.002)	(0.002)	(0.002)	(0.002)	(0.001)	(0.002)

Observations	9,664	12,495		10,627	18,462
Adjusted R²	0.153	0.147		0.156	0.140

	Low assets and low rel. length	High assets and high rel. length	Difference (1) − (2)	Low income and low rel. length	High income and high rel. length	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)

Funding gap	1.60 $^{* * *}$	0.969 $^{* * *}$	0.626 $^{* * *}$	1.46 $^{* * *}$	1.04 $^{* * *}$	0.423 $^{*}$
	(0.186)	(0.159)	(0.245)	(0.212)	(0.160)	(0.265)
ROA	−0.293 $^{* * *}$	−0.200 $^{* * *}$	−0.093	−0.304 $^{* * *}$	−0.217 $^{* * *}$	−0.087
	(0.018)	(0.012)	(0.022)	(0.021)	(0.012)	(0.024)
Market share	0.001	0.003 $^{*}$	−0.002	0.004	0.002	0.002
	(0.002)	(0.002)	0.002	(0.002)	(0.001)	(0.003)

Observations	12,609	12,156		8,640	13,191
Adjusted R²	0.093	0.205		0.094	0.181

Investor characteristics	Yes	Yes		Yes	Yes
Bond characteristics	Yes	Yes		Yes	Yes
Bank FE	Yes	Yes		Yes	Yes
Year FE	Yes	Yes		Yes	Yes
Province FE	Yes	Yes		Yes	Yes

Bank bond share (Total portfolio)

Low assets and low education

High assets and high education

Difference
(1) − (2)

Low income and low education

High income and high education

Difference
(4) − (5)

(1)

(2)

(3)

(4)

(5)

(6)

Funding gap

1.38

^{* * *}

0.531

^{* * *}

0.849

^{* * *}

1.15

^{* * *}

0.691

^{* * *}

0.455

^{* *}

(0.185)

(0.173)

(0.253)

(0.175)

(0.151)

(0.231)

ROA

−0.319

^{* * *}

−0.188

^{* * *}

−0.132

−0.310

^{* * *}

−0.216

^{* * *}

−0.093

(0.016)

(0.014)

(0.021)

(0.015)

(0.012)

(0.019)

Market share

0.004

^{* *}

0.002

0.005

^{* * *}

0.001

0.004

(0.002)

(0.001)

(0.002)

Observations

9,664

12,495

10,627

18,462

Adjusted R²

0.153

0.147

0.156

0.140

Low assets and low rel. length

High assets and high rel. length

Difference (1) − (2)

Low income and low rel. length

High income and high rel. length

Difference (4) − (5)

(1)

(2)

(3)

(4)

(5)

(6)

Funding gap

1.60

^{* * *}

0.969

^{* * *}

0.626

^{* * *}

1.46

^{* * *}

1.04

^{* * *}

0.423

^{*}

(0.186)

(0.159)

(0.245)

(0.212)

(0.160)

(0.265)

ROA

−0.293

^{* * *}

−0.200

^{* * *}

−0.093

−0.304

^{* * *}

−0.217

^{* * *}

−0.087

(0.018)

(0.012)

(0.022)

(0.021)

(0.012)

(0.024)

Market share

0.001

0.003

^{*}

−0.002

0.004

0.002

(0.002)

0.002

(0.002)

(0.001)

(0.003)

Observations

12,609

12,156

8,640

13,191

Adjusted R²

0.093

0.205

0.094

0.181

Investor characteristics

Yes

Bond characteristics

Yes

Bank FE

Yes

Year FE

Yes

Province FE

Yes

Bank bond share (Total portfolio)
Funding gap	1.38 $^{* * *}$	0.531 $^{* * *}$	0.849 $^{* * *}$	1.15 $^{* * *}$	0.691 $^{* * *}$	0.455 $^{* *}$
	(0.185)	(0.173)	(0.253)	(0.175)	(0.151)	(0.231)
ROA	−0.319 $^{* * *}$	−0.188 $^{* * *}$	−0.132	−0.310 $^{* * *}$	−0.216 $^{* * *}$	−0.093
	(0.016)	(0.014)	(0.021)	(0.015)	(0.012)	(0.019)
Market share	0.004 $^{* *}$	0.002	0.002	0.005 $^{* * *}$	0.001	0.004
	(0.002)	(0.002)	(0.002)	(0.002)	(0.001)	(0.002)

Observations	9,664	12,495		10,627	18,462
Adjusted R²	0.153	0.147		0.156	0.140

	Low assets and low rel. length	High assets and high rel. length	Difference (1) − (2)	Low income and low rel. length	High income and high rel. length	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)

Funding gap	1.60 $^{* * *}$	0.969 $^{* * *}$	0.626 $^{* * *}$	1.46 $^{* * *}$	1.04 $^{* * *}$	0.423 $^{*}$
	(0.186)	(0.159)	(0.245)	(0.212)	(0.160)	(0.265)
ROA	−0.293 $^{* * *}$	−0.200 $^{* * *}$	−0.093	−0.304 $^{* * *}$	−0.217 $^{* * *}$	−0.087
	(0.018)	(0.012)	(0.022)	(0.021)	(0.012)	(0.024)
Market share	0.001	0.003 $^{*}$	−0.002	0.004	0.002	0.002
	(0.002)	(0.002)	0.002	(0.002)	(0.001)	(0.003)

Observations	12,609	12,156		8,640	13,191
Adjusted R²	0.093	0.205		0.094	0.181

Investor characteristics	Yes	Yes		Yes	Yes
Bond characteristics	Yes	Yes		Yes	Yes
Bank FE	Yes	Yes		Yes	Yes
Year FE	Yes	Yes		Yes	Yes
Province FE	Yes	Yes		Yes	Yes

Table 6.

Open in new tab

Double sort on financial sophistication and bank relationship.

This table shows estimates from panel regressions of households’ own bank bond exposure on bank supply-side measures, for different groups of investors. Specifically, we divide investors based on three proxies for financial sophistication: total amount of assets, total income, and the level of education. Additionally, we divide investors based on the length of the bank relationship. We perform a double sort on investor attributes, focusing on households in the top and in the bottom 50 percent of the distribution for each measure. As education is not a continuous variable, we classify as highly educated those who report having either high school or above-high-school education levels. Conversely, we classify as less educated those who report having below-high-school-level education. For assets, we classify high (low) assets as those investors who report having total assets above (below) EUR 200,000. Standard errors are clustered at the investor level and are reported in parentheses. ***, **, and * denote that estimates are statistically significant at the 1, 5, and 10 percent levels.

Bank bond share (Total portfolio)
	Low assets and low education	High assets and high education	Difference (1) − (2)	Low income and low education	High income and high education	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)
Funding gap	1.38 $^{* * *}$	0.531 $^{* * *}$	0.849 $^{* * *}$	1.15 $^{* * *}$	0.691 $^{* * *}$	0.455 $^{* *}$
	(0.185)	(0.173)	(0.253)	(0.175)	(0.151)	(0.231)
ROA	−0.319 $^{* * *}$	−0.188 $^{* * *}$	−0.132	−0.310 $^{* * *}$	−0.216 $^{* * *}$	−0.093
	(0.016)	(0.014)	(0.021)	(0.015)	(0.012)	(0.019)
Market share	0.004 $^{* *}$	0.002	0.002	0.005 $^{* * *}$	0.001	0.004
	(0.002)	(0.002)	(0.002)	(0.002)	(0.001)	(0.002)

Observations	9,664	12,495		10,627	18,462
Adjusted R²	0.153	0.147		0.156	0.140

	Low assets and low rel. length	High assets and high rel. length	Difference (1) − (2)	Low income and low rel. length	High income and high rel. length	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)

Funding gap	1.60 $^{* * *}$	0.969 $^{* * *}$	0.626 $^{* * *}$	1.46 $^{* * *}$	1.04 $^{* * *}$	0.423 $^{*}$
	(0.186)	(0.159)	(0.245)	(0.212)	(0.160)	(0.265)
ROA	−0.293 $^{* * *}$	−0.200 $^{* * *}$	−0.093	−0.304 $^{* * *}$	−0.217 $^{* * *}$	−0.087
	(0.018)	(0.012)	(0.022)	(0.021)	(0.012)	(0.024)
Market share	0.001	0.003 $^{*}$	−0.002	0.004	0.002	0.002
	(0.002)	(0.002)	0.002	(0.002)	(0.001)	(0.003)

Observations	12,609	12,156		8,640	13,191
Adjusted R²	0.093	0.205		0.094	0.181

Investor characteristics	Yes	Yes		Yes	Yes
Bond characteristics	Yes	Yes		Yes	Yes
Bank FE	Yes	Yes		Yes	Yes
Year FE	Yes	Yes		Yes	Yes
Province FE	Yes	Yes		Yes	Yes

Bank bond share (Total portfolio)
	Low assets and low education	High assets and high education	Difference (1) − (2)	Low income and low education	High income and high education	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)
Funding gap	1.38 $^{* * *}$	0.531 $^{* * *}$	0.849 $^{* * *}$	1.15 $^{* * *}$	0.691 $^{* * *}$	0.455 $^{* *}$
	(0.185)	(0.173)	(0.253)	(0.175)	(0.151)	(0.231)
ROA	−0.319 $^{* * *}$	−0.188 $^{* * *}$	−0.132	−0.310 $^{* * *}$	−0.216 $^{* * *}$	−0.093
	(0.016)	(0.014)	(0.021)	(0.015)	(0.012)	(0.019)
Market share	0.004 $^{* *}$	0.002	0.002	0.005 $^{* * *}$	0.001	0.004
	(0.002)	(0.002)	(0.002)	(0.002)	(0.001)	(0.002)

Observations	9,664	12,495		10,627	18,462
Adjusted R²	0.153	0.147		0.156	0.140

	Low assets and low rel. length	High assets and high rel. length	Difference (1) − (2)	Low income and low rel. length	High income and high rel. length	Difference (4) − (5)

	(1)	(2)	(3)	(4)	(5)	(6)

Funding gap	1.60 $^{* * *}$	0.969 $^{* * *}$	0.626 $^{* * *}$	1.46 $^{* * *}$	1.04 $^{* * *}$	0.423 $^{*}$
	(0.186)	(0.159)	(0.245)	(0.212)	(0.160)	(0.265)
ROA	−0.293 $^{* * *}$	−0.200 $^{* * *}$	−0.093	−0.304 $^{* * *}$	−0.217 $^{* * *}$	−0.087
	(0.018)	(0.012)	(0.022)	(0.021)	(0.012)	(0.024)
Market share	0.001	0.003 $^{*}$	−0.002	0.004	0.002	0.002
	(0.002)	(0.002)	0.002	(0.002)	(0.001)	(0.003)

Observations	12,609	12,156		8,640	13,191
Adjusted R²	0.093	0.205		0.094	0.181

Investor characteristics	Yes	Yes		Yes	Yes
Bond characteristics	Yes	Yes		Yes	Yes
Bank FE	Yes	Yes		Yes	Yes
Year FE	Yes	Yes		Yes	Yes
Province FE	Yes	Yes		Yes	Yes

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