Hi everyone,
I am trying to replicate a study which is been made by Michaelas, Chittenden and Poutziouris in the paper “Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data”.
Here the link: https://link.springer.com/content/pd...8010724051.pdf
In this paper the study is been conducted running a panel data fixed effect regression with time and industries dummies on a database of UK firm analysed for ten years.
My database is composed by 5954 firm with data of ten years each (from 2008 to 2009). Since I extremely need both the values of time and industries dummies, I run this regression on Stata (See the two attachments).
IND_* is the dummy variable that I created for identifying each industries.
My question is:
I am trying to replicate a study which is been made by Michaelas, Chittenden and Poutziouris in the paper “Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data”.
Here the link: https://link.springer.com/content/pd...8010724051.pdf
In this paper the study is been conducted running a panel data fixed effect regression with time and industries dummies on a database of UK firm analysed for ten years.
My database is composed by 5954 firm with data of ten years each (from 2008 to 2009). Since I extremely need both the values of time and industries dummies, I run this regression on Stata (See the two attachments).
IND_* is the dummy variable that I created for identifying each industries.
My question is:
- Since I already know why matematically the industries dummy is omitted due to collinearity (it is time invariat), why in the paper the authors can get the values from that dummies?
- Am I wrong in the way I am running the regression?
- If I am not wrong, Is there any chance to get those omitted values maintaing the panel fixed effect regression?
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