I am analysing the effects of corporate governance on firm performance on ftse100 companies and I have unbalanced data. I was wondering how to go about forming the regression.
I have conducted an LM test which the result was prob chi 0.000.This I believe rejects the 'no panel effect' and supports the use of panel data instead of OLS. Furthermore, I have carried out Hausman test and the result failed to reject the HO. I think I will be using the random effect RE.
I was wondering if you agree with me or have any recommendations.