Creating a new variable by adjusting for a regression

[Haavard Fidjeland]

Hello,

I am a student, and i have some trouble handeling some operations in Stata.

I want to control for Industry effects on profits, in order to study firm-spesific contribution to sucsess. The goal is to get industry-adjusted profits to compare firms from different industries, similar to how one would adjust for inflation when comparing different years. I have a dataset with acsess to profits, and a code indicating the industry the firm is operating in .

I created a dummy variable for each of the Industries, and ran a quantile regression for industry and profits. This gave me a correlation coefficient for each of the industries in each of the quantiles.

However, I am unsure of how to use the results of this regression to create "Industry-adjusted profits". In other words, how can I create a new variable "adusted profits" where the effects of industry has been removed. The "adjusted profits" does not need to reflect the actual profits of the firm, as long as the rank-order of the firms within each industry remains the same.

Thanks in advance.

[Carlo Lazzaro]

Haarvard:
see -help qreg postestimation##predict-

[Marcos Almeida]

Although the variables and theme are out of my field, your query reminds me of probability weights as a tool to 'adjust' your regression model.

You may wish to take a look at pweights.

[Haavard Fidjeland]

Haarvard:
see -help qreg postestimation##predict-

This worked perfectly! Thanks a lot!