Hi everybody, My regression is as follows:
optimismt = Beta0 + Beta1 * optimismt-1 + Beta2 * Size + Beta3 * Tobin's Q...
optimismt and optimismt-1 are both dummy variables being 1 if the person is optimistic in this period or was optimistic in the period before, respectively.
Regressing without fixed effects I get Beta1= 0.9
Regressing with fixed effects I get Beta1= 0.7
How can I interpret these results? And how can I interpret the coefficients for Size and Tobin's Q?
Thank you in advance.
Best regards,
Jens
optimismt = Beta0 + Beta1 * optimismt-1 + Beta2 * Size + Beta3 * Tobin's Q...
optimismt and optimismt-1 are both dummy variables being 1 if the person is optimistic in this period or was optimistic in the period before, respectively.
Regressing without fixed effects I get Beta1= 0.9
Regressing with fixed effects I get Beta1= 0.7
How can I interpret these results? And how can I interpret the coefficients for Size and Tobin's Q?
Thank you in advance.
Best regards,
Jens
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