There are two kinds of research method, including Qualitative and Quantitative research. Qualitative Research means collecting and analyzing other people’s ideas relevant to the study topic. John (2006) claimed that qualitative research is subjective since it depends on the people’s opinion. This kind of research employs various methods, including collecting information from individuals or interviewees, in-depth interviews and focus groups. The nature of qualitative research is exploratory. The researchers conduct their studies by interviewing in-depth a small numbers of individuals or a focus groups. The interviewees will answer the questionnaire provided by the interviewers. The preciseness of qualitative research depends …show more content…
It is extended from simple linear regression to deal with several explanatory variables in order to enhance the accuracy of the estimates (Coldwell and Herbst, 2004). Additionally, this thesis also uses panel data for five years to study the impact of firm-specific characteristics on its level of inventory holdings. Panel data, which is also known as longitudinal or cross sectional time-series data, is a dataset including the observation of the behavior of entities (Osca, 2007). These entities can be countries, companies, or individuals. According to Christ (2008), panel data provides several advantages:
First and foremost, panel data provides an extensive range of issues and the ability to handle more complicated problems than pure time-series or pure cross-sectional data. Additionally, panel data is useful for complicated and change-dynamics models due to the enormousness in data point, which is considered to be more convenient than pure cross-section or pure time-series …show more content…
F-test is applied to identify whether or not there is the presence of fixed effect within the data (Blackwell, 2008). This test has the null hypothesis as Ho = μ1 = μ2 = μn = 0, which indicates that all the coefficients are jointly zero. The alternative hypothesis points out that there is at least one parameter different from zero. The conclusion of F-statistic is determined by comparing the p-value with all the significant level of 1%, 5%, or 10%. If p-value is less than the expected significant level, then null hypothesis is rejected, which can be concluded that the fixed effect happens. Conversely, in case the result is not statistically significant, it means there is no fixed effect and it is advisory to employ further