Panel Data and Unobservable Individual Effects

Hausman, Jerry A.; Taylor, William E.

doi:10.2307/1911406

Cited by 2,058 publications

(651 citation statements)

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“…In this study, Pooled Regression Analysis and Panel Fixed-Effects Method are utilized. Hausman test developed by Hausman (1978) and Hausman -Taylor (1981) is performed in order to determine which method to be chosen (fixed or random effects) to be utilized in the constructed models' solution, and by considering results of related test, utilization of fixed effects method is found to be appropriate. Descriptive statistics for main variables utilized in Panel data analysis are shown below in Table 5.…”

Section: Resultsmentioning

confidence: 99%

“…The adjusted 2 ratio shows that independent variables explain the 83% of the dependent variable. Panel Fixed-Effects Method Estimation Results of Hausman test developed by Hausman (1978) and Hausman-Taylor (1981) are shown below in Table 8. The results of current ratio, asset structure, and equity turnover variables are found to be statistically significant within the analysis.…”

Section: Number Of Observation 316mentioning

confidence: 99%

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Determinants of Capital Structure: The Evidence from European Energy Companies

Berkman¹,

İskenderoğlu²,

Karadeniz³

et al. 2016

IJBA

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The main aims of this study are to determine the factors which affect capital structure of corporations operating in energy sector and to detect capital structure theories with which capital structure of energy sector companies would comply. In this context, a panel data analysis was performed on totally 79 European energy companies operated between the years 2009 -2012. According to results of the study; diminishing leverage rate caused by increased liquidity in European energy companies can be explained with the Pecking Order Theory, while escalating leverage rate caused by increased tangible fixed assets or equity turnover would be defined with the Trade-off Theory.

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Section: Resultsmentioning

confidence: 99%

Section: Number Of Observation 316mentioning

confidence: 99%

Determinants of Capital Structure: The Evidence from European Energy Companies

Berkman¹,

İskenderoğlu²,

Karadeniz³

et al. 2016

IJBA

View full text Add to dashboard Cite

show abstract

“…Because some of the variables in this paper are assumed to be endogenous, the fixed and random effects models are presented only for comparison purposes. Hausman and Taylor (1981) developed a new model which combines both fixed effects and random effect models. The Hausman and Taylor model assumes that some of the explanatory variables are correlated with c i , while some are not.…”

Section: Fixed and Random Effects Modelmentioning

confidence: 99%

“…However, the selection of the variables as an instrument is not clear. According to Hausman and Taylor (1981) the selection of the instrumental variables is based on economic intuition, however, in this paper the choice of the instruments are based on the framework by Barro and Sala-i-Martin (1992).…”

Section: Hausman-taylor Modelmentioning

confidence: 99%

An Empirical Analysis of the Determinants of Economic Growth in the Western Balkans

Fetai

Mustafi²,

Fetai³

2017

Scientific Annals of Economics and Business

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The objective of this paper is to assess the main determinants and the policies that affect economic growth in the Western Balkan over the period 1994 to 2015. It employs techniques such as pooled OLS, fixed and random effects model, and Hausman-Taylor model with instrumental variables (IV). The study shows evidence of conditional convergence, indicating the need for an upward move in the steady state level. The results show that foreign direct investments, gross savings and domestic credit to the private sector have a positive effect on per capita growth. On the other hand, initial level of per capita growth, corruption, unemployment, and general government final consumption, have a negative relationship with per capita growth. The study also shows a puzzling result, that schooling is not a significant factor for growth in Western Balkans. The study also highlights the relevance of attracting more foreign direct investments and reduction in corruption.

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“…Thus, this will allow heterogeneity bias to occur that arise due to the omitting a time constant variable (Wooldridge, 2015). While for this study, panel data method are employed to control the individual-specific effects that usually unobservable which may be correlated with other explanatory variables included in the regression model (Hausman & Taylor, 1981).…”

Section: Resultsmentioning

confidence: 99%

Capital Structure Influence on Construction Firm Performance

2017

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The interconnectedness between capital structure and firm performance is a topic of high interest among scholars and management alike. The scholars tend to unveil the why segment of the relationship, while the management looks into the how side to promote capital structure policy which can optimise the firm performance. While many studies have looked into this relationship across multiple industries and spanning across decades of data, the current study trains its lens on Malaysian public listed company companies which operate in the construction sector, and with data window between 2010 to 2014. This specific sector was chosen for their high gearing which renders firms to relatively high insolvency exposure emanating from interest rate fluctuations. The five-year timeframe was selected to isolate potential data contaminations streaming from global financial crisis which winds down in 2009. Financial data of the company were extracted from Bloomberg Terminal based on a pre-prepared list of Bloomberg tickers. A total of 225 observations were recorded in this study. Using Tobin's Q as a proxy for firm performance, this study finds a mixed result where short term debts ratio indicates a significant negative effect, while long term debt ratio presents a non-significant influence. Explanations on this output are therefore discussed in this paper.

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Panel Data and Unobservable Individual Effects

Cited by 2,058 publications

References 2 publications

Determinants of Capital Structure: The Evidence from European Energy Companies

Determinants of Capital Structure: The Evidence from European Energy Companies

An Empirical Analysis of the Determinants of Economic Growth in the Western Balkans

Capital Structure Influence on Construction Firm Performance

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