Table 5 Findings of the Ohlson (1995)...

Table 5

Findings of the Ohlson (1995) model applied to banks in MENA markets

Model variables	Pooled OLS		Panel methods				Pooled OLS		Panel methods
Model variables	Pooled OLS		Random effects		Fixed effects		Pooled OLS		Random effects		Fixed effects
Dependent variable	MV		MV		MV		MV		MV		MV
Independent variables	Coefficient estimates	t-statistic	Coefficient estimates	z-statistic	Coefficient estimates	t-statistic	Coefficient estimates	t-statistic	Coefficient estimates	z-statistic	Coefficient estimates	t-statistic
BV	0.559***	2.84	0.699***	6.41	0.801***	6.52	0.591***	3.14	0.645***	7.11	1.07***	8.02
RI	13.97***	8.79	15.18***	22.60	15.47***	5.79	14.20***	9.28	12.84***	7.91	14.05***	9.89
DPOR	−0.023	−0.95	−0.033	−1.09	−0.037	−0.81	–	–	–	–	–	–
DYR	–	–	–	–	–	–	−0.075	−0.08	−0.092	−1.01	−2.174	−0.84
Islamic dummy	0.039	0.02	−0.081	−0.03	−0.068	−2.18	−0.029	−0.03	−0.072	−0.15	−0.10	−2.24
SIZE	0.969	1.37	1.559*	1.91	3.071	1.29	0.976	1.38	1.613*	2.01	3.084	1.32
FCR dummy	−4.86***	−3.32	−3.52	−1.55	−2.916	−2.01	−0.91***	−3.35	−3.34 ***	−3.64	−2.919	−2.08
ASC dummy	−4.23**	−2.51	−3.98*	−1.76	−3.696	−2.00	−4.28**	−2.51	−3.99*	−1.76	−3.723	−2.25
Constant	3.141**	2.18	1.61	0.73	0.336	0.90	5.192***	4.78	6.11***	4.16	7.48***	5.28
R-squared	47.2%		49.1%		64.7%		51.2%		55.4%		61.9%
Lagrange multiplier T	547.54***						623.12***
F-test	5.52***						6.17***
Hausman-Test			10.98**						11.49**
DW	1.73		1.79		1.84		1.88		1.90		1.93
Country*Year FE	Yes		Yes		Yes		Yes		Yes		Yes
Number of observations	1,782						1,843

Model variables	Pooled OLS		Panel methods				Pooled OLS		Panel methods
Model variables	Pooled OLS		Random effects		Fixed effects		Pooled OLS		Random effects		Fixed effects
Dependent variable	MV		MV		MV		MV		MV		MV
Independent variables	Coefficient estimates	t-statistic	Coefficient estimates	z-statistic	Coefficient estimates	t-statistic	Coefficient estimates	t-statistic	Coefficient estimates	z-statistic	Coefficient estimates	t-statistic
BV	0.559***	2.84	0.699***	6.41	0.801***	6.52	0.591***	3.14	0.645***	7.11	1.07***	8.02
RI	13.97***	8.79	15.18***	22.60	15.47***	5.79	14.20***	9.28	12.84***	7.91	14.05***	9.89
DPOR	−0.023	−0.95	−0.033	−1.09	−0.037	−0.81	–	–	–	–	–	–
DYR	–	–	–	–	–	–	−0.075	−0.08	−0.092	−1.01	−2.174	−0.84
Islamic dummy	0.039	0.02	−0.081	−0.03	−0.068	−2.18	−0.029	−0.03	−0.072	−0.15	−0.10	−2.24
SIZE	0.969	1.37	1.559*	1.91	3.071	1.29	0.976	1.38	1.613*	2.01	3.084	1.32
FCR dummy	−4.86***	−3.32	−3.52	−1.55	−2.916	−2.01	−0.91***	−3.35	−3.34 ***	−3.64	−2.919	−2.08
ASC dummy	−4.23**	−2.51	−3.98*	−1.76	−3.696	−2.00	−4.28**	−2.51	−3.99*	−1.76	−3.723	−2.25
Constant	3.141**	2.18	1.61	0.73	0.336	0.90	5.192***	4.78	6.11***	4.16	7.48***	5.28
R-squared	47.2%		49.1%		64.7%		51.2%		55.4%		61.9%
Lagrange multiplier T	547.54***						623.12***
F-test	5.52***						6.17***
Hausman-Test			10.98**						11.49**
DW	1.73		1.79		1.84		1.88		1.90		1.93
Country*Year FE	Yes		Yes		Yes		Yes		Yes		Yes
Number of observations	1,782						1,843

Note(s): The table presents coefficient estimates and t/z statistics. *,** and *** show significance at 10, 5, 1% levels, respectively. The Pooled OLS and fixed effects methods are corrected for heteroscedasticity by employing White's corrected heteroscedasticity robust regression

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