Dear Statalist users,
I am a complete beginner using Stata, so please bear with me if my question is too obvious.
I am researching the impact of corruption and governance on cross-border M&A performance. My dataset includes 600+ cross-border M&A announcements between 2008 and 2017. This is a case of a weakly balanced panel data as a country and firm can appear only once or several times during the 10-year period. In some cases, the same country and firm can show up more than once in the same year. The data looks something like this:
I am interested in the model: CAR = a + x1 +x2 +x3 + u
My question is can I use a fixed or random effect model with this type of data? - if so which variable should I use as cross-section?
I have tried the following:
1) xtset country year, yearly (which gives me error 451, which indicates that there are repeated values)
2) xtset ActionID year, yearly
this one gives me the following result:
panel variable: actionid (weakly balanced)
time variable: year, 2008 to 2017
delta: 1 year
However, when I run my regression: xtreg car x1 x2 x3 i.year, fe - I get all omitted variables due to collinearity.
I'd really appreciate any help I can get.
Many thanks,
Henry
I am a complete beginner using Stata, so please bear with me if my question is too obvious.
I am researching the impact of corruption and governance on cross-border M&A performance. My dataset includes 600+ cross-border M&A announcements between 2008 and 2017. This is a case of a weakly balanced panel data as a country and firm can appear only once or several times during the 10-year period. In some cases, the same country and firm can show up more than once in the same year. The data looks something like this:
Year | Action ID | Country | Firm | CAR | X1 | X2 | X3 |
2008 | 1 | France | a | -0.06 | |||
2008 | 2 | France | b | 0.02 | |||
2008 | 3 | Croatia | c | -0.20 | |||
2009 | 4 | England | d | -0.01 | |||
2009 | 5 | France | a | 0.04 | |||
2010 | 6 | Belgium | f | 0.01 | |||
2011 | 7 | Belgium | g | -0.03 | |||
2011 | 8 | France | a | 0.02 | |||
2011 | 9 | Belgium | f | 0.04 | |||
2012 | 10 | Croatia | c | 0.08 | |||
2012 | 11 | Croatia | j | -0.09 |
My question is can I use a fixed or random effect model with this type of data? - if so which variable should I use as cross-section?
I have tried the following:
1) xtset country year, yearly (which gives me error 451, which indicates that there are repeated values)
2) xtset ActionID year, yearly
this one gives me the following result:
panel variable: actionid (weakly balanced)
time variable: year, 2008 to 2017
delta: 1 year
However, when I run my regression: xtreg car x1 x2 x3 i.year, fe - I get all omitted variables due to collinearity.
I'd really appreciate any help I can get.
Many thanks,
Henry
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