Hi
Please, I need some help.
By adding the variable "Investment1" in the correlation matrix, the correlation between the variables "Size1" and "ROA1" changed. How can I identify the type of problem with my "Investment1" variable data?
Investment1 is the ratio of capital expenditure over the revenue [negative or positive and winsor2 Investment1, replace cuts(1 99)].
Please, I need some help.
By adding the variable "Investment1" in the correlation matrix, the correlation between the variables "Size1" and "ROA1" changed. How can I identify the type of problem with my "Investment1" variable data?
Investment1 is the ratio of capital expenditure over the revenue [negative or positive and winsor2 Investment1, replace cuts(1 99)].
. correlate Size1 ROA1 | ||||
(obs=1666) | ||||
| | Size1 | ROA1 | ||
------------- | + | --------- | --------- | |
Size1 | | | 1 | ||
ROA1 | | | 0.3358 | 1 | |
. correlate Size1 ROA1 Investment1 | ||||
(obs=1419) | ||||
| | Size1 | ROA1 | Invest~1 | |
------------- | + | --------- | --------- | --------- |
Size1 | | | 1 | ||
ROA1 | | | 0.1481 | 1 | |
Investment1 | | | 0.0879 | -0.0295 | 1 |
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