Factors influencing commercial bank profitability in Bangladesh: a panel data approach

Future Business Journal

Table 5 Summary of common effect, fixed effect, and random effect models

Variable	Common effect model		Fixed effect model		Random effect model
Variable	Coeff	Prob	Coeff	Prob	Coefficient	Prob
Bank-specific factors
C	0.019108	0.0000***	0.025163	0.0000***	0.019484	0.0000***
CAD	0.016099	0.2201	0.008740	0.5860	0.025776	0.0514*
BRNCH	− 0.015363	0.0000***	− 0.05283	0.0000***	− 0.020618	0.0000***
AM	0.059592	0.0001***	0.028626	0.0000***	0.112309	0.0000***
DEP	− 0.001031	0.7583	− 0.00016	0.9569	0.003451	0.1955
AQ	− 0.011863	0.0033***	− 0.01115	0.0066***	− 0.018248	0.0000***
R-squared	0.375704		0.732413		0.358966
Adjusted R-squared	0.355404		0.678511		0.339181
Log likelihood	724.2821		795.5797
F-statistic	19.41544		13.58778		18.14332
Prob (F-statistic)	0.000000		0.000000		0.000000
Hausman test				0.0000***
Macroeconomic factors
C	0.052537	0.0019	0.052537	0.0000	0.052537	0.0000
GDP	0.009119	0.5440	0.009119	0.4106	0.009119	0.4104
INF	0.069293	0.3563	0.006929	0.0211**	0.069293	0.2111
EXRTE	− 0.000566	0.0004	− 0.000566	0.0000***	− 0.000566	0.0000
ST	− 0.011510	0.4149	− 0.011510	0.2691	− 0.011510	0.2689
R-squared	0.173101		0.614541		0.278349
Adjusted R-squared	0.152809		0.540202		0.260640
Log likelihood	700.8077		764.9204
F-statistic	8.530521		8.266780		15.71773
Prob (F-statistic)	0.000000		0.000000		0.000000
Hausman test				0.0000***