greetings all , i hope this question meet you in a good health ,
am working on my thesis that is about financial structure and its relation with financial performance, am doing an empirical study evidence from Jordan market, furthermore ,after extracting the data and running the Hsiao Test it occur that the panel data is heterogeneous at the both levels, slope and the intercept, means i cannot do fixed or random effect, as am new to panel data , i do not know what model is suitable for this case . and a heterogeneous panel data does it differ from homogeneous panel data only on the model choice ? or there are other test i must run? keeping in mind that my N is 24 and T is 14 , i tried to play with the dimensions but the heterogeneity existed anyway, and my variables are ratios ( ROA , ROE / Debt Ratio , Equity Ratio ) and the capital structure determinants as control variables ( Size , Assets , Tax , Liquidity ),
Kenza Medjahed Thank you for the answer , i did avoid hsiao test on determinant the model as i read that it is sensitive to a lot of parameters , i used Fisher test and hausman test, the result did support fixed model , i did run covariance robust estimator ( sandwich estimator " arellano method " ) to correct the model from hetero problem and serial correlation , all that with R langauge ( plm Package ) .