Question: From the regression output answer the following questions: Dependent Variable: ROA Method: Panel Least Squares Date: 04/15/21 Time: 14:02 Sample: 2014 2018 Periods included: 5

  1. From the regression output answer the following questions:

Dependent Variable: ROA

Method: Panel Least Squares

Date: 04/15/21 Time: 14:02

Sample: 2014 2018

Periods included: 5

Cross-sections included: 5

Total panel (balanced) observations: 25

Variable

Coefficient

Std. Error

t-Statistic

Prob.

C

-0.045631

0.086373

-0.528299

0.6034

LIQUIDITY

0.021287

0.011007

1.933996

0.0681

CAPITAL_ADEQUACY

-0.031650

0.004295

-7.369850

0.0000

INFLATION

-0.199705

0.777009

-0.257018

0.7999

FINANCIAL_RISK

0.037749

0.073517

0.513463

0.6135

ASSET_MANAGEMENT

0.743775

0.005126

145.1114

0.0000

R-squared

0.999785

Mean dependent var

0.362852

Adjusted R-squared

0.999729

S.D. dependent var

1.284541

S.E. of regression

0.021160

Akaike info criterion

-4.667852

Sum squared resid

0.008507

Schwarz criterion

-4.375322

Log likelihood

64.34815

Hannan-Quinn criter.

-4.586717

F-statistic

17685.43

Durbin-Watson stat

1.600212

Prob(F-statistic)

0.000000

  1. From the regression output table identify independent and dependent variable. (3 marks)
  2. Write down the regression equation. (2 marks)
  3. Explain R-squared value. (3 marks)
  4. If alpha value is 0.05 which variables will be accepted? (3 marks)

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