Industry as a control variables

[Abi ayad]

Hello,
I'm doing my master thesis and I'm using a multitple linear regression. I'm regressing CSR performance on CSR contracting and I'm controlling
for various control variables such as ROA, Sales etc.
Controlling for Industries is also important according to the literrature. I have already made a list with all my companies and assigned
them an ID refering to their industries. Nevertheless, I don't really understand how to integrate the control variable Industries in stata
Thank you for you help
Abi

[Carlo Lazzaro]

Abi:
welcome to this forum.
The simplest way to include such a control is to rely on the wonderful capabilities of -fvvarlist- notation to create a multi-level categorical predictor (one industry=on elevel).
At the end you should use the following notation in the right-hand side of your regerssion equation;

i.industry

As an aside, and forewording that your research fiield is far way from mine (hence my concern may well be totally off target) are you sure that regressing CSR performance on CSR contracting does not create a reverse causality issue (that is CSR performance affects CSR contracting, too)?

[Abi ayad]

Hello Carlo,
Thank you for your answer! I could controlled for industries.
In order to avoid for reverse causality, I controlled for CSR level for the previous year and thus mitigating this bias.
Kind regards,
Abi