Hello!
I'm running a probit regression. The DV, continue, is a dummy variable indicating whether the firm would choose to continue doing sth (did this thing in year t-1, and continue doing this in year t); the IV, Δinstitutional, is the change of the percentage of a firm's shares held by institutional investors from year t-1 to t. I have some control variables also measured as change variables. The purpose of this regression is to investigate how the change in a firm's shares held by institutional investors from year t-1 to t affects the firm's decision to continue doing sth. However, I obtain a very large coefficient of Δinstitutional, I wonder what could probably result in this large coefficient, is it reasonable? Is that because the DV is not a change variable whereas the IV and controls are change variables, so they are not comparable?
Thanks a lot for any help!
I'm running a probit regression. The DV, continue, is a dummy variable indicating whether the firm would choose to continue doing sth (did this thing in year t-1, and continue doing this in year t); the IV, Δinstitutional, is the change of the percentage of a firm's shares held by institutional investors from year t-1 to t. I have some control variables also measured as change variables. The purpose of this regression is to investigate how the change in a firm's shares held by institutional investors from year t-1 to t affects the firm's decision to continue doing sth. However, I obtain a very large coefficient of Δinstitutional, I wonder what could probably result in this large coefficient, is it reasonable? Is that because the DV is not a change variable whereas the IV and controls are change variables, so they are not comparable?
Code:
| Robust
continue | Coef. Std. Err. z P>|z| [95% Conf. Interval]
-------------------+----------------------------------------------------------------
institutional |
D1. | 8.83314 12.78101 0.69 0.489 -16.21719 33.88346
