Correlated Random Effects—Hausman Test

Equation: United

Test period random effects

Test Summary

Chi-Sq. Statistics

Chi-Sq. d.f.

Prob.

Period Random

0.000000

8

1.0000

*Period test variance is invalid. Hausman statistic set to zero

**WARNING: estimated period random effects variance is zero

Period random effects test comparisons:

Variable

Fixed

Random

Var (Diff.)

Prob.

AQ_CG

0.261478

0.262261

0.000210

0.9570

BS_CG

0.055606

0.059017

0.000011

0.2988

CDLTY_CG

0.067771

0.077369

0.000059

0.2128

IND_CG

0.022535

0.022203

0.000000

0.4984

INSH_CG

0.185175

0.201269

0.000122

0.1453

LEVRG

−0.027539

−0.012963

0.000320

0.4151

LISH_CG

0.013942

0.016741

0.000003

0.1115

TMSH_CG

0.005947

0.002962

0.000009

0.3297

Period random effects test equation:

Dependent Variable: ROA FP

Method: Panel Least Squares

Sample 2009-2018

Periods included: 10

Cross-sections included: 7

Total panel (unbalanced) observations: 68

Variable

Coefficient

Std. Error

t-statistics

Prob.

C

0.512316

2.686086

0.190730

0.8495

AQ_CG

0.261478

0.140776

1.857414

0.0691

BS_CG

0.055606

0.027688

2.008326

0.0500

CDLTY_CG

0.067771

0.136055

0.498112

0.6206

IND_CG

0.022535

0.005042

4.469856

0.0000

INSH_CG

0.185175

0.046054

4.020866

0.0002

LEVRG

−0.027539

0.027391

−1.005409

0.3195

LISH_CG

0.013942

0.007170

1.944515

0.0575

TMSH_CG

0.005947

0.006547

0.908326

0.3681

Effects specification

Period fixed (dummy variables)

R-squared

0.625759

Mean dependent var

1.336912

Adjusted R-squared

0.498517

S.D. dependent var

0.449515

S.E. of regression

0.318326

Akaike info criterion

0.770445

Sum squared resid

5.066571

Schwarz criterion

1.357962

Log likelihood

−8.195142

Hannan-Quinn criter

1.003237

F-statistic

4.917864

Durbin-Watson stat

0.879559

Prob(F-statistic)

0.000005