Table A2.

Hausman Test - Choice between Fixed and Random Effects

Conventional BanksIslamic Banks
H0: Difference in coefficients not systematicIf H0 is rejected (p-value < 0.05) → the fixed effects model should be useH0: Difference in coefficients not systematicIf H0 is rejected (p-value < 0.05) → the fixed effects model should be use
χ2(6) = 28.58χ2(6) = 18.06
p-value = 0.0001p-value = 0.0061
Source: Author’s Own Work

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