Table 4.
F-test and Hausman specification test results.
| Panel A: The null hypothesis: The pooled OLS is more appropriate than the fixed effects model | F-statistic [p-value] | Test results |
|---|---|---|
| ROA (Eq. (7)) | 48.578 [0.000]** | Fixed effects |
| ROE (Eq. (7)) | 47.414 [0.000]** | Fixed effects |
| SR (Eq. (7)) | 0.675 [0.670] | Pooled OLS |
| Tobin's Q (Eq. (7)) | 63.389 [0.000]** | Fixed effects |
| ROA (Eq. (8)) | 49.658 [0.000]** | Fixed effects |
| ROE (Eq. (8)) | 48.132 [0.000]** | Fixed effects |
| SR (Eq. (8)) | 0.777 [0.588] | Pooled OLS |
| Tobin's Q (Eq. (8)) | 60.602 [0.000]** | Fixed effects |
| ROA (Eq. (9)) | 42.595 [0.000]** | Fixed effects |
| ROE (Eq. (9)) | 42.883 [0.000]** | Fixed effects |
| SR (Eq. (9)) | 0.594 [0.736] | Pooled OLS |
| Tobin's Q (Eq. (9)) | 68.622 [0.000]** | 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 |
|---|---|---|
| ROA (Eq. (7)) | 31.934 [0.000]** | Fixed effects |
| ROE (Eq. (7)) | 46.150 [0.000]** | Fixed effects |
| Tobin's Q (Eq. (7)) | 1.486 [0.829] | Random effects |
| ROA (Eq. (8)) | 38.088 [0.000]** | Fixed effects |
| ROE (Eq. (8)) | 56.723 [0.000]** | Fixed effects |
| Tobin's Q (Eq. (8)) | 1.304 [0.861] | Random effects |
| ROA (Eq. (9)) | 9.193 [0.051]* | Fixed effects |
| ROE (Eq. (9)) | 9.898 [0.048]* | Fixed effects |
| Tobin's Q (Eq. (9)) | 0.734 [0.947] | Random effects |
*
Represent the significance level of 5%.
**
Represent the significance level of 1%.