## 4 Results
The higher-order moments incorporated into the model reveal that profitability dispersion and its sensitivity to explanatory variables vary across institutions and economic environments, emphasizing the heterogeneous nature of banking sector performance in the EU. The cross-section weighted model (Table 7a) achieved an exceptionally high R-squared value of 0.9772 and an adjusted R-squared of 0.9755, indicating a highly explanatory model. The F-statistic value of 590.26 with a _p_-value of 0.000 confirms the overall significance of the model. Importantly, the Durbin-Watson statistic of 2.03 suggest the absence of autocorrelation. Furthermore, the LR test for heteroskedasticity yielded a _p_-value of 0.0000, confirming the presence of cross-sectional heteroskedasticity, which justifies the use of EGLS with cross-section weights. \begin{table}
\begin{tabular}{c c c c} \hline \hline \multicolumn{4}{c}{**Panel Cross-Section Heteroskedasticity LR Test**} \\ \hline \hline  & Value & df & Probability \\ Likelihood ratio & 168.1047 & 27 & 0.0000 \\ \hline \hline \end{tabular} Source: Author’s own calculation.  
\end{table} 
Table 6: Residual diagnostics. \begin{table}
\begin{tabular}{c c c c c} \hline \hline \multicolumn{4}{c}{**Unrestricted Cointegration Rank Test (Trace and Maximum Eigenvalue)**} \\ \hline \hline Hypothesized & Fisher Stat. & \multicolumn{2}{c}{Fisher Stat.} \\ No. of CE(s) & (from trace test) & Prob. & (from max-eigen test) & Prob. \\ None * & 446.6301 & 0.0000 & 106.8879 & 0.0000 \\ At most 1 * & 339.7421 & 0.0000 & 84.63178 & 0.0002 \\ At most 2 * & 255.1104 & 0.0000 & 74.45463 & 0.0007 \\ At most 3 * & 180.6557 & 0.0021 & 56.01552 & 0.0202 \\ At most 4 & 124.6402 & 0.0572 & 43.58368 & 0.0937 \\ \hline \hline \end{tabular} The Trace test indicates 4 cointegrating eqn(s) at the 0.05 level; the Max-Eigenvalue test indicates 4 cointegrating eqn(s) at the 0.05 level; * denotes rejection of the hypothesis at the 0.05 level. Source: Author’s own calculation.  
\end{table} 
Table 5: Johansen Fisher panel cointegration test. \begin{table}
\begin{tabular}{c c c c c} \hline \hline  & \multicolumn{4}{c}{**(a)**} \\ \hline
**Variable** & **Coefficient** & **Std. Error** & **t-Statistic** & **Prob. ** \\ \hline LOGATM & 0.133626 & 0.030709 & 4.351367 & 0.0000 \\ LOGBANKEMPL & \(-\)0.209911 & 0.042370 & \(-\)4.954290 & 0.0000 \\ LOGDESI\_HC & 1.096892 & 0.142832 & 7.679610 & 0.0000 \\ LOGDESI\_IDT & \(-\)1.169670 & 0.042611 & \(-\)27.44990 & 0.0000 \\ LOGDIGINCL & 2.026711 & 0.133127 & 15.22389 & 0.0000 \\ LOGEBANK & \(-\)0.249761 & 0.038688 & \(-\)6.455854 & 0.0000 \\ LOGGDP & \(-\)0.258883 & 0.064009 & \(-\)4.044504 & 0.0001 \\ RD & 0.273297 & 0.012905 & 21.17785 & 0.0000 \\ MOMENT1 & 0.650968 & 0.015505 & 41.98429 & 0.0000 \\ MOMENT2 & 0.391258 & 0.006523 & 59.97923 & 0.0000 \\ C & \(-\)2.864215 & 0.610652 & \(-\)4.690419 & 0.0000 \\ \multicolumn{4}{c}{Weighted Statistics} \\ R-squared & 0.977155 & Mean dependent var & 12.82729 \\ Adjusted R-squared & 0.975499 & S.D. dependent var & 34.05505 \\ S.E. of regression & 0.400361 & [PERSON] info criterion & \(-\)0.457428 \\ Sum squared resid & 22.11988 & Schwarz criterion & \(-\)0.235660 \\ Log likelihood & 45.07838 & Hannan-Quinn criter. & \(-\)0.367327 \\ F-statistic & 590.2642 & Durbin-Watson stat & 2.028018 \\ Prob(F-statistic) & 0.000000 & & \\ \multicolumn{4}{c}{Unweighted Statistics} \\ R-squared & 0.566544 & Mean dependent var & 1.956753 \\ Sum squared resid & 22.12014 & Durbin-Watson stat & 1.229024 \\ \hline  & \multicolumn{4}{c}{**(b)**} \\ \hline
**Variable** & **Coefficient** & **Std. Error** & **t-Statistic** & **Prob.