Hausman Test Research Articles

Company Age, Company Size and Earnings Management in Listed Industrial Goods Manufacturing Companies in Nigeria: A Moderating Role of Political Connection of Board Members

The study analysed the effect of company age, company size and political connections of Board members on earning management of quoted industrial goods manufacturing companies in Nigeria. The specific objectives of the study include assessing the effect of company age, company size and evaluating the moderating effect of political connections of board members on earnings management of quoted industrial goods manufacturing companies in Nigeria. The study used 130 firm-year data involving thirteen (13) quoted industrial goods manufacturing companies purposely selected over the period of 2012-2021. The data were sourced from the annual audited reports and accounts of the companies obtained from the Nigerian Exchange Group. The study used E-Views 8.0 statistical package and used panel regression techniques to analyse the data after carrying out diagnostic tests such as normality test, Panel Unit Root Test, Multicollinearity Test, Redundant Fixed Effects Tests, Hausman test, Heteroskedasticity Test, Serial Correlation Test to select the most appropriate model and fixed effect model was used for the model. The findings revealed that company age and company size do not influence earnings management. Also, the study revealed that political connection of board members insignificantly moderated the effect of company age and company size on earnings management. The study recommended that increased attention be given to internal control mechanisms to help curtail aggressive corporate earnings manipulation, reduce the effect of political connection, and enhance the financial reporting quality, particularly in Nigeria. Keywords: Firm Characteristics, Political Connections, Accruals, Real Earnings Management. Journal Reference Format: Adesuyi, T. Y. & Owoseni, G. D. (2024): Company Age, Company Size and Earnings Management in Listed Industrial Goods Manufacturing Companies in Nigeria: A Moderating Role of Political Connection of Board Members. Humanities, Management, Arts, Education & the Social Sciences Journal. Vol. 12. No. 1, Pp 49-72. www.isteams.net/humanitiesjournal. dx.doi.org/10.22624/AIMS/HUMANITIES/V12N1P4

Kemampulabaan Perusahaan Sektor Property dan Real Estate: Investigasi Faktor yang Mempengaruhinya

The research explores profitability in property and real estate companies, and thoroughly investigates the influence of working capital turnover, capital structure, and company liquidity. This is an explanatory-research conducted on companies listed on the Indonesia Stock Exchange (IDX) in the property and real estate sector. The sample consists of 14 companies selected through purposive sampling. The research data comprises annual financial reports sourced from secondary data that were publicly available from 2018 to 2022 on the official website of the Indonesia Stock Exchange (www.idx.co.id). Based on panel data regression analysis using model tests with Chow and Hausman tests, the most appropriate model for this research is the Random Effect Model (REM). This research has demonstrated that capital structure, as a significant variable, influences company profitability, while working capital turnover and company liquidity do not have an effect.

Determinan Nilai Perusahaan di Indonesia: Kajian Empiris Pada Perusahaan Sub Sektor Makanan

This empirical study is an explanatory-research that examines and discusses firm value and reveals the influencing factors, namely capital structure, firm size, and profitability. The research object is companies listed on the Indonesia Stock Exchange (IDX), using a sample of 17 companies in the food and beverage sub-sector through purposive sampling. The data for this study consist of annual financial report documentation sourced from secondary data that have been fully published from 2018 to 2022 on the official website of the Indonesia Stock Exchange (www.idx.co.id). Based on panel data regression analysis through model testing using Chow test and Hausman test, the most appropriate model used in this research is the Fixed Effect Model (FEM). This research proves that firm size and profitability variables have a significant influence on firm value, while the capital structure (DER) does not have a significant.

Function of Non-Performing Loans In The Capital Adequacy Ratio Model of the Banking Sector

Research is being done in order to address the discrepancies in the findings of earlier investigations as well as the phenomenon of non-performing loans (NPL), which cannot account for the effect it has on the CARR. As a result, the researchers used different time series and cross-sectional data in their subsequent studies. Using multiple regression analysis, this type of descriptive quantitative research examines panel data from 22 samples of banking sector firms over a seven-year period. This formula uses the research object, which are companies in the banking sector listed on the Indonesia Stock Exchange, and uses NPL as an intervening variable to maximize the CAR value. Two research models are combined in one model, and each model is subjected to the Chow Test, Hausman Test, Lagrange Multiplier Test, and model selection test stages. Findings in the first model indicate that LDR's negative connection with NPL can be used to explain its impact. These outcomes differ from the relevant theory. Similar to the first study model, where the results are not as relevant as the theory, the results in the second model are also just LDR and may directly explain its effect on CAR with a negative association. It is hoped that these findings would give banking sector managers the best possible direction

ANALISIS PENGARUH NON PERFORMING LOAN TERHADAP NILAI PERUSAHAAN DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL INTERVENING

The study is specifically designed to empirically test the magnitude of the influence of Non-Performing Loans on Company Value with Good Corporate Governance as an intervening variable in Financing Companies/Multifinance Companies listed on the Indonesia Stock Exchange for the period 2018-2022. The population in this study consists of 15 financing sub-sector companies listed on the IDX for the period 2018-2022. By using purposive sampling, a sample of 12 companies with 5 years of observation was obtained, resulting in a total of 60 data points in this study. Classic assumption tests including normality and heteroscedasticity tests, estimation model selection including chow test, hausman test, and lagrange test, panel data regression analysis, goodness of fit tests including partial significance test (t-test), simultaneous significance test (f-test), and determination coefficient (R2), as well as path analysis to test hypotheses using Eviews 12 software. The results of the study indicate that Non-Performing Loans do not affect Good Corporate Governance in Financing Companies/Multifinance Companies listed on the Indonesia Stock Exchange for the period 2018-2022. Non-Performing Loans and Good Corporate Governance together influence Company Value in Financing Companies/Multifinance Companies listed on the Indonesia Stock Exchange for the period 2018-2022. Good Corporate Governance is unable to mediate the influence of Non-Performing Loans on Company Value in Financing Companies/Multifinance Companies listed on the Indonesia Stock Exchange for the period 2018-2022.

Impact of Domestic and Foreign Capital on Economic Growth and Employment: Empirical Analysis of 43 Lower Middle-income Economies

The purpose of this paper is to investigate the impact of domestic and foreign capital inflows on economic growth and employment in lower-middle-income countries (LMICs). To analyze the impact of domestic and foreign capital on economic growth and employment, this study used panel data from 43 LMICs spanning the period 1990 to 2021. The study employed the Panel Ordinary Least Squares (POLS) estimation method for the baseline regression analysis. However, the Breusch-Pagan test suggested that the estimation model is not suitable for GDP per capita growth (GDPPCG) under POLS estimation. Thus, the Generalized Least Squares (GLS) procedure has been employed to examine the impact of domestic and foreign capital on economic growth. After the Hausman specification test, we used a random-effect estimation procedure for the conclusion of the impact analysis under panel data analysis techniques. This study concludes that there is a positive impact of both domestic and foreign capital on economic growth in LMICs. However, only foreign capital inflow has a significantly positive impact on employment. The impact of domestic and foreign capital inflows on economic growth and employment differs significantly. Therefore, this study advises that, for LMICs, domestic capital is more important for growth and employment.

Integrating agency and resource dependency theories: the moderating effect of board size on the relationship between dividends and firm value in Malaysia

PurposeThis paper aims to examine the moderating effects of board size on the relationship between dividends and firm value in Malaysian settings. The theoretical foundations of this research were the integration between agency and resources dependency theories.Design/methodology/approachPanel data are extracted from DataStream and the annual report for the period of 2012 to 2021, and pooled OLS, random effects, and fixed effects analyses were employed to examine the relationship. Breusch–Pagan Lagrange multiplier (LM) test and the Hausman test used to determine the most appropriate between these three analyses (OLS, random effects, and fixed effects). The results are valid even after calculating the robust standard error to mitigate the potential heteroskedasticity and serial correlation.FindingsThe empirical results show that board size positively moderates the relationship between dividends and firm value in all the models tested. The results indicate that a larger board of size can minimize the agency problem (agency theory) because a larger board size can more effectively monitor and control management's opportunistic behavior due to more set of skilled and talented individuals included in the boardroom (resources dependency theory). Additionally, effective monitoring can also lead to the increase in dividend payout to maintain a good reputation among investors and simultaneously increase firm value.Practical implicationThis study contributes to helping the regulators and industry players in Malaysia to improve existing guidelines for determining dividend and board size to increase firm value. The findings may also provide inputs to the policymakers in recommending the optimum dividend and board size that resulting an increase in valuation.Originality/valueBy incorporating agency and resources dependency theory, authors investigate the moderating effect of board size on dividend and firm value relationships in Malaysian markets.

Effects of some macroeconomics variables on estimated tax evasion: evidence from Sub-Saharan Africa

PurposeMost research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now investigating the role of macroeconomic variables in inducing tax evasion. This study adds to the limited studies in this new direction of research. Previous studies found that inflation, low gross domestic product (GDP) growth and gross fixed capital formation causes recession, increases unemployment, raise interest rates, hurts both domestic and foreign direct investments. This study examined the relationship between these variables and estimated tax evasion in Sub-Saharan Africa.Design/methodology/approachThe study adopts a correlation research design with 2,300 data points collected from 23 countries in Sub-Saharan Africa. Specifically, tax to GDP ratio, gross fixed capital formation per GDP and the GDP annual growth report from each country for the period 2011–2020 was retrieved. Generalised least square regression technique was employed to analyse the data due to the presence of heteroskedasticity in the model and random effect was utilized based on the Hausman test. To avoid misspecification and biased result; therefore, all relevant test was conducted including the multicollinearity test.FindingsThe results indicate that GDP annual growth and gross fixed capital formation have a significant negative impact on estimated tax evasion in Sub-Saharan Africa. The findings further indicate a negative but insignificant relationship between inflation and estimated tax evasion in Sub-Saharan Africa. The study concludes that both GDP annual growth rate and gross fixed capital formation negatively influence estimated tax evasion and the policy implications in the African continent were discussed.Originality/valueThe new findings on the effects of GDP annual growth, growth fixed capital formation and inflation on estimated tax evasion provide novel knowledge that is currently lacking in the current literature, specifically Sub-Saharan African continent.

Analisis Panel Regression: Profitability, Debt Policy and Economic Value Added to the Value of Automotive and Component Companies in Indonesia

This study aims to prove the effect of profitability (Return On Equity), Debt Policy (Debt to Equity Ratio), and Economic Value Added on Company Value (Price Book Value), both partially and simultaneously. This research approach is quantitative which is associative in nature to prove the effect of independent variables on dependent variables. The population of this study is an automotive company listed on the IDX using 12 sample companies during the 2019 - 2022 observation period so that 48 observation data units are obtained. The data analysis method used is Panel Regression which uses cross-sectional and time series data. The methods used are Chow Test, Hausman Test to estimate the selected regression model. This study proves that the Fixed Effect Model is the selected regression model. The results prove that Profitability as measured by ROE has no significant effect on the value of Automotive companies on the IDX Debt policy as measured by DER has a significant effect on the value of Automotive companies on the IDX. Economic Value Added (EVA) has a significant effect on the value of Automotive companies on the IDX. The results of simultaneous testing prove that profitability, debt policy and EVA together have an effect on firm value.

Does the education level of the CEO and CFO affect the profitability of real estate and construction companies? Evidence from Vietnam

This article aims to determine the level and trend of the impact of the educational level of CEOs and CFOs on the profitability of real estate and construction companies in Vietnam. Because Vietnam is an emerging economy, insights into the profitability of this market will be lessons learned for other economies with similar characteristics. This quantitative study is based on secondary data collected from audited financial statements, annual reports of 123 Vietnamese real estate and construction companies, and macroeconomic data. Pool OLS, Fixed effect and Random effect regression models and the Hausman test are used to find the appropriate model. The study uses GLS regression to overcome heteroscedasticity and autocorrelation and uses the generalized method of moments (GMM) to overcome endogeneity. We find that the profitability of listed construction and real estate companies with highly educated CEOs is no higher than that of other companies. Furthermore, companies whose CFOs have master's or doctorate degrees are less likely to be profitable. Other findings confirm the heterogeneous effects of operating efficiency, economic growth rate, and financial leverage on different profitability measures. The study also proves that company age, firm size, net working capital, liquidity ratio and inflation rate do not affect profitability.

The Impact of Fundamental Analysis on Equity Prices: The Food and Drink Sector

This research aims to ascertain the impact of fundamental factors, such as Return on Assets (ROA), Debt Equity Ratio (DER), Price Earnings Ratio (PER), Current Ratio (CR), and Total Assets Turnover (TATO), on stock prices. The study targets on the listed companies in the food and beverage sectors listed on the Indonesia Stock Exchange between 2012 and 2015. The research design is causal research methods, and the sampling technique is purposive sampling method. During the four-year observation period, 11 out of 17 companies met the criteria. The data was analyzed using data regression analysis technique, employing three approaches: Common Effect, two types of effects: random and fixed. Using the F test and t-statistical test, the Hausman test, Chow test model and Lagrange multiplier test were employed for the model selection. By using F tests, the study’s findings showed that ROA, CR, DER, TATO, and PER have an impact on changes in stock prices. The t-statistic test result indicated that while the variables DER, CR, and PER had no effect on the stock price of food and beverage companies, ROA and TATO have a partial influence on the share price.

Leverage-induced profitability in Bangladeshi firms: An empirical analysis

The intent of the inquiry is to extensively examine the impact of leveraged financing on firm performance in Bangladesh, revealing the subtle dynamics of leverage-induced profitability and emphasizing the importance of a balanced debt and equity structure for financial sustainability in emerging markets. To explore how financial leverage in an entity’s capital structure affects a business’s financial sustainability and analyze how it may be used to improve company performance, the study has employed a 22-year data set (2000–2021) from the Dhaka Stock Exchange. To perform Fixed Effect Regression based on the Hausman test, ‘Firm performance’ is used as the regressand, which was further proxied by Earnings per Share, Return on Assets, Return on Equity, and Basic Earning Power respectively. Alternatively, proxy variables for the regressor ‘Financial leverage’ include Debt-to-Equity, Debt-to-Asset, Current Liability-to-Equity, and Current Liability-to-Asset. The test has shown that leverage in the capital structure could lead to both favorable and unfavorable effects in emerging countries like Bangladesh. Age, along with Debt-to-Asset, has shown a substantial negative impact on Earnings per Share. Also, the Debt-to-Asset and Current Liability-to-Asset negatively affect the Return on Assets. However, Debt-to-Equity, Current Liability-to-Equity and Size have a substantial positive impact, however Age has a negative effect on Return on Equity. Lastly, Debt-to-Asset has shown a positive impact on Basic Earning Power. The findings suggest that balancing debt and equity is crucial to benefit from leverage-induced profitability, and the models can be extended or amended across industries to expand the study on this persistent leverage-induced profitability argument.

Faktor-Faktor yang Mempengaruhi Ketimpangan Ekonomi Kabupaten/Kota di Provinsi Jambi

This research is entitled Factors Influencing District/City Economic Inequality in Jambi Province in 2015-2018. This study aims to analyze the effect of Agglomeration, Labor, and Investment on Regency/City Economic Inequality in Jambi Province in 2015-2018. The analytical method used in this study is panel data regression for the 2015-2018 period which comes from the Jambi Central Bureau of Statistics. Statistical testing includes Common, Fixed, and Random tests, as well as conducting the Chow Test and Hausman Test to obtain the test to be selected. The results of the data analysis show that among the three agglomeration variables (X1) it has a sig. (0.040) < (0.05), so it partially has a significant effect on economic inequality in Jambi Province in 2015-2018. Labor variable (X2) has a sig. (0.8846) (0.05), so partially it has no significant effect on economic inequality in Jambi Province in 2015-2018. Investment (X3) Investment (X3) has a sig. (0.407) (0.05), so partially it has no significant effect on economic inequality in Jambi Province in 2015-2018. Simultaneously obtain a calculated F value of 4.460 with a Probability value (Prob F-statistic) of 0.000. Because the probability value is 0.000 <0.05 (α) and F count (358.6774) > F table (2.78), it can be concluded that all independent variables namely agglomeration, number of workers, investment together have a significant effect on economic inequality in Jambi Province from 2015 to 2018. Based on the value of the coefficient of determination, the independent variables in the equation, namely agglomeration, labor, and investment jointly affect 65.9% of economic inequality in Jambi Province in 2015-2018, while the remaining 24.1% is explained by other factors outside the model.

Analisis Determinan Struktur Modal Perusahaan Manufaktur Sektor Aneka Industri yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2016-2022

The purpose of this study was to analyze the effect of profitability, tangibility, growth opportunity, non-debt tax shield (NDTS), uniqueness on the company's capital structure. The data used in this research is panel data taken from the financial reports of manufacturing companies in the various industrial sectors listed on the Indonesia Stock Exchange (IDX) from the 2016-2022 period. By using non-probability sampling method with purposive sampling technique, a sample of 20 companies was obtained. The method used is panel data regression analysis method. In this research, testing and selection of the best model was carried out using the Chow test and Hausman test, and the result is that the Fixed effect model is the best model. The results showed that profitability, non-debt taxshield (NDTS) and uniqueness had a negative and significant effect on capital structure, with each value of the coefficient of profitability, non-debt taxshield (NDTS) and uniqueness, tangibility has a positive and significant effect while growth opportunity has a positive and insignificant effect with each tangibility coefficient value, growth opportunity by testing using a significance level of 5%. Simultaneously, profitability, tangibility, growth opportunity, non-debt tax shield (NDTS), uniqueness significantly influence the capital structure with a coefficient of determination of 82.7746%.

Effect of the Supply-Side factors on inflation in South Asia: An analysis of oil price, technology, and labor market dynamics

As a long-lasting and ongoing economic problem, inflation significantly affects how society views socioeconomic concerns and how people go about living their daily lives. For South Asian economies, inflation is not only a hypothetical economic concept; it is a brutal reality that affects their capacity to pay for necessities. Therefore, this study examines the effects of oil prices, technological advances, and labor market dynamics on inflation using the Panel ARDL on a subset of South Asian countries over the years 1995 to 2022. The Hausman test recommends PMG estimates while the cointegration test verifies the presence of long-run correlations between variables. According to the findings of this study, oil prices contribute to inflation in South Asian economies. Moreover, technological advancements have the ability to lower inflationary pressures. The overall condition of the labor market particularly is reflected in factors like employment rates, which have a signaficant impact on inflation. Tight labor markets can result in short-term demand-pull inflation when workers demand higher wages. On the other hand, cost-push inflation may occur if wages continue to rise steadily over time.

Analisis Pengaruh Tingkat Pendidikan, Tingkat Kesehatan dan Jenis Kelamin Terhadap TPAK di Sumatera Barat

This Study aims to determine and analyze the effect of Education Level,Health Level and Gender on Labor Force Participation Rate in West Sumatera. This research uses panel data from 2017-2021 in 19 regencies/citiesin West Sumatera which are sourced from the central bureau of statistics. Before using the regression, the Chow test and Hausman test were carrid out and the results of the analysis showed that the selected model was the Random Effect Model (REM). The results of the study reveal that : (1) Education Level has a significant effect on the Labor Force Participation Rate in West Sumatera (2) Health Level has no significant effect on the Labor Force Partisipation Rate in west Sumatera (3) Gender has a significaneffect on the Labor force Partisipation Rate in West Sumatera. These finding confirm the role of the labor force is suggested to the Government that it is necessary to increase the ease of access to education for the community. So that in the future there will be an increase in Labor Force Participation Rate in West Sumatera.

종합부동산세의 정책적 변화가 아파트 매매가격에 미치는 영향에 관한 연구

1. CONTENTS
 (1) RESEARCH OBJECTIVES
 This study is a study on the impact of policy changes in comprehensive real estate tax on apartment sales prices. The purpose of this study is to examine the effects of real estate characteristics, macroeconomic characteristics, and comprehensive real estate tax characteristics on apartment sales prices in the metropolitan area, Seoul, Gyeonggi-do, and Incheon. In particular, we want to know how policy changes in comprehensive real estate holding tax affect apartment sales prices through the characteristics of comprehensive real estate tax.
 (2) RESEARCH METHOD
 This research method was analyzed as a fixed effect model using the Hausman test.
 (3) RESEARCH FINDINGS
 This study has the following implications. First, it examines the impact of policy changes in comprehensive real estate holding tax in the metropolitan area, Seoul, Gyeonggi-do, and Incheon on apartment sales prices. This study can be said to have implications at the present time in terms of comprehensive real estate holding tax changes due to the real estate recession. Second, this study was constructed with panel data combining time series and cross-sectional data, and attempted to determine the relevance of the apartment sales price index by dividing it into real estate characteristics, macroeconomic characteristics, and comprehensive real estate holding tax characteristics. Third, at a time when changes to the comprehensive real estate holding tax are taking place, research on the impact of the comprehensive real estate holding tax on apartment sales prices will be important, and regional differences in the metropolitan area on the impact of the comprehensive real estate holding tax by characteristics will be examined. This will be seen as meaningful.

DEVELOPMENT OF RETAIL BANKING SERVICES IN THE CONTEXT OF DIGITAL TRANSFORMATION

The article examines retail banking services, their importance and how they are improving in the context of digital transformation. In the article, using the data of 14 commercial banks in Uzbekistan, the number of observations is 280. The dependent variable is the deposit practice of commercial banks, the independent variables are the credit practice of commercial banks, the remote services of commercial banks and the practice of commercial banks with plastic cards, analyzed through several models.The research shows that when we analyze 3 models based on panel data, the Random effects estimator (REE) model econometric equation of the impact of retail banking services development practices in the national economy today is Y=0.59x1+0.08x2+0.22x3-1.66 is the most optimal model. Accordingly, regarding the choice between the Fixed effects estimator (FEE) model and the Random effects estimator (REE) model, the Hausman test is used to determine which model is more suitable. The test compares the estimates from two models and tests whether the difference between them is statistically significant. If the p-value of the test is greater than the significance level (usually 0.05), then the Random effects estimator (REE) model is preferred because it allows for unobserved heterogeneity not accounted for in the Fixed effects estimator (FEE) model.In this case, the p-value of the Hausman test is equal to 0.36, which is greater than 0.05. We use the Random effects estimator (REE) model to analyze the impact of the practice of developing retail banking services in the national economy today based on panel data. We came to the conclusion that it is suitable.

Analysis of the human development index in East Java Province 2017-2021

This research aims to determine Population, Education and Minimum Wages on the Human Development Index. The dependent variable is the Human Development Index, while the independent variables are Population, Education and Minimum Wage. The data used in this research is secondary data which examines data for 5 (five) periods 2017 – 2021 with Regencies/Cities in East Java Province. The research method used is panel data regression analysis. The tool used to carry out testing is Eviews 9. The tests used in this research are the FE, CE, RE, Chow, Hausman and LM tests. The results of this research are: 1) Population is significant and has a positive effect on the Human Development Index in the Regency/City of East Java Province, 2) Education is significant and has a positive effect on the Human Development Index. and 3rd) Minimum Wage has a significant negative effect on the Human Development Index.

Energy Consumption, Financial Development and Environmental Degradation: An Empirical Evidence from SAARC Countries

This study examines the correlation between environmental degradation, financial development, and energy consumption in the South Asian Association for Regional Cooperation (SAARC) region. Data covering the period of 1980 to 2022 have been utilized. For empirical estimation, the study applies the Hausman test and the Fixed Effect Model (FEM). The country-specific effects of energy consumption (EC) and financial development (FD) on total greenhouse gases (TGHG) have been checked. The dependent variable is environmental deterioration. TGHGs are used to illustrate ecological degradation. Foreign Direct Investment (FDI) and economic growth have been control variables. FEM results show that EC, Gross Domestic Product (GDP), and FDI all have a significant effect on environmental deterioration. In contrast, the link between FD and TGHG emissions is inverse, implying that FD reduces ecological damage. However, the Environmental Kuznets Curve (EKC) idea has been confirmed since, as GDP grows, pollution begins to drop in an inverted "U-shape." The Pollution Haven Hypothesis (PHH) has also been verified in certain SAARC countries. The findings have significance for governments in encouraging industries to participate in renewable energy projects and for financial institutions in determining how much to subsidize loans for such investment projects to reduce TGHG emissions, resulting in a slightly cleaner environment.