**Table 5.**

*Sensitivity analysis for subsamples.*

**Figure 3.**

*Impulse response functions for foreign and domestic banks. Subsample of foreign banks. Subsample of domestic banks.*

Variance decompositions for the two groups of foreign and domestic banks are displayed in **Table 6**. In total, 15 and 11% of variations in efficiency are explained by capital for foreign and domestic banks, respectively. The explanatory power of risk in efficiency variance is 7% in foreign banks but only 1% in domestic banks explains 7% of variance in efficiency for foreign banks but just 1% of efficiency variance for domestic banks. Twenty percent of capital variance can be justifìed by efficiency disturbance, whereas the explanation of risk is only 9% in foreign banks and 11% in domestic banks.

*Causal Relationship Among Bank Capitalization, Efficiency, and Risk-Taking in ASEAN… DOI: http://dx.doi.org/10.5772/intechopen.109120*


**Table 6.**

*VDC for subsamples of foreign banks and domestic banks.*
