Hi,
When I run the following commands, normally, the coefficients of the reg command and xtreg command should be equal to eachother. When I run the understanding regressions, coefficients for both commands are not the same. Does anyone now how I can fix this? In other words, should both coefficients always be equal, or are there reasons why they are not the same?
reg Leverage_3 i.LF#c.Profitability_1 i.LF#c.Size i.LF#c.Growth_1 i.LF#c.Tangibility i.LF#c.Age i.Country i.NACEREV1, robust cluster (ID)
xtreg Leverage_3 i.LF#c.Profitability_1 i.LF#c.Size i.LF#c.Growth_1 i.LF#c.Tangibility i.LF#c.Age, fe robust (ID)
To make the regressions more clear. My sample consists of private family firms and public firms (LF = Legal Form). For my research, I study the impact of Profitability, Size, Growth, Tangibility and Age on Firm's Leverage. I control for Country fixed effects and Industry fixed effects (NACEREV1). For robustness, I run two regression to compare the outcomes of a simple Pooled OLS regression with the outcomes of a firm fixed effect regressions.
Thanks in advance!
Jordy
When I run the following commands, normally, the coefficients of the reg command and xtreg command should be equal to eachother. When I run the understanding regressions, coefficients for both commands are not the same. Does anyone now how I can fix this? In other words, should both coefficients always be equal, or are there reasons why they are not the same?
reg Leverage_3 i.LF#c.Profitability_1 i.LF#c.Size i.LF#c.Growth_1 i.LF#c.Tangibility i.LF#c.Age i.Country i.NACEREV1, robust cluster (ID)
xtreg Leverage_3 i.LF#c.Profitability_1 i.LF#c.Size i.LF#c.Growth_1 i.LF#c.Tangibility i.LF#c.Age, fe robust (ID)
To make the regressions more clear. My sample consists of private family firms and public firms (LF = Legal Form). For my research, I study the impact of Profitability, Size, Growth, Tangibility and Age on Firm's Leverage. I control for Country fixed effects and Industry fixed effects (NACEREV1). For robustness, I run two regression to compare the outcomes of a simple Pooled OLS regression with the outcomes of a firm fixed effect regressions.
Thanks in advance!
Jordy
Comment