Question: Based on the following output tables, write all the panel data regression models. Which is a better model, FEM or REM? Justify your answer. Table

Based on the following output tables, write all the panel data regression models. Which is a better model, FEM or REM? Justify your answer.

Based on the following output tables, write all

Table #1 Dependent Variable: STOCK_RETURN Method: Panel Least Squares Sample: 2010 2019 Total panel (unbalanced) observations: 254 Variable Coefficient Std. Error t-Statistic Prob. INSIDE OWNERSHIP FORIEGN OWNERSHIP DEBIT_EQUITY_RATIO 0.033637 -0.009297 1.523568 0.314936 0.005924 0.002396 0.621936 0.151334 5.678341 -3.880679 2.449718 2.081064 0.0000 0.0001 0.0151 0.0386 Effects Specification Cross-section fixed (dummy variables) R-squared Adjusted R-squared F-statistic Prob(F-statistic) 0.756539 Mean dependent var 0.652722 S.D. dependent var 6.471076 Durbin-Watson stat 0.000002 0.300586 0.590850 2.046331 Table #2 Dependent Variable: STOCK_RETURN Method: Panel EGLS (Cross-section random effects) Sample: 2010 2019 Total panel (unbalanced) observations: 254 Variable Coefficient Std. Error t-Statistic Prob. INSIDE_OWNERSHIP FORIEGN OWNERSHIP DEBIT_EQUITY_RATIO 0.009139 -0.002287 0.133631 0.324292 0.002561 0.001463 0.326499 0.094381 3.567870 -1.563330 0.409285 3.435985 0.0004 0.1192 0.6827 0.0007 Effects Specification S.D. Rho Cross-section random Idiosyncratic random 0.000000 0.543864 0.0000 1.0000 Weighted Statistics R-squared Adjusted R-squared F-statistic Prob(F-statistic) 0.088198 Mean dependent var 0.077257 S.D. dependent var 8.060812 Durbin-Watson stat 0.000038 0.300586 0.590850 1.194498 Table #3 Correlated Random Effects - Hausman Test Equation: Untitled Test cross-section random effects Test Summary Chi-Sq. Statistic Chi-Sq. d.f. Prob. Cross-section random 39.306101 3 0.0000

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