Table 3.
Results of F-test and Hausman specification test.
| Panel A: The null hypothesis: The pooled OLS is more appropriate than the fixed effects model | F-statistic [p-value] | Test results |
|---|---|---|
| OPR (regression equation (12)) | 58.0536 [0.0000]∗∗∗ | Fixed effects |
| ROA (regression equation (13)) | 56.9582 [0.0000]∗∗∗ | Fixed effects |
| ROE (regression equation (14)) | 53.9729 [0.0000]∗∗∗ | Fixed effects |
| SR (regression equation (15)) | 0.3987 [0.8094] | Pooled OLS |
| SCORE (regression equation (16)) | 4.1028 [0.0032]∗∗∗ | Fixed effects |
| Panel B: The null hypothesis: The random effects model is more appropriate than the fixed effects model | Hausman specification test [p-value] | Test results |
| OPR (regression equation (12)) | 12.0987 [0.0008]∗∗∗ | Fixed effects |
| ROA (regression equation (13)) | 11.2884 [0.0008]∗∗∗ | Fixed effects |
| ROE (regression equation (14)) | 11.1955 [0.0008]∗∗∗ | Fixed effects |
| SCORE (regression equation (16)) | 10.8621 [0.0010]∗∗∗ | Fixed effects |
Note: ∗, ∗∗, and ∗∗∗ indicate that the null hypothesis can be rejected at the 10%, 5% and 1% level, respectively.