While the random-effect VCA approach estimates the variances attributable to the
independent variables, it does not disclose whether each independent variable is
statistically significant. Therefore, several notable studies on corporate effects also
adopted fixed-effect models, in which the independent variables were alternatively
treated as fixed factors, to supplement the random-effect VCA models and to estimate
the statistical significance of the independent variables (e.g. McGahan and Porter, 1997;
Rumelt, 1991). Similarly, this study employs the fixed-effect general linear model
(GLM) procedure to study the significance of the eight proposed variables. As further
explained in the following sections, the results of this statistical analysis show the
existence of corporate effects on the hotels held by different owners.