Dear all,
Currently I am trying to test the following model:
ROA = alpha + beta_1 * FamilyFirm + B_t(Control Variables)
FamilyFirm: Dummy variable which is 1 if a firm is a family firm, 0 otherwise. (This, however is the same for all years for each firm)
My teacher told me it was best to use fixed effects. state-time fixed effects and industry fixed effects.
I am trying to run the model as following:
xtreg roa FamilyFirm , fe vce(robust)
With everything I try, stata is deleting the familyfirm variable due to collinearity.
How should I test this model? I want to test whether family firms performed better or not. How do I include the state-time fixed effects and industry fixed effects? I do have an industry, state and time variable.
Last question: how do I test for heteroskedasticity?
I am looking forward to your replies.
Best regards,
Lucas
Currently I am trying to test the following model:
ROA = alpha + beta_1 * FamilyFirm + B_t(Control Variables)
FamilyFirm: Dummy variable which is 1 if a firm is a family firm, 0 otherwise. (This, however is the same for all years for each firm)
My teacher told me it was best to use fixed effects. state-time fixed effects and industry fixed effects.
I am trying to run the model as following:
xtreg roa FamilyFirm , fe vce(robust)
With everything I try, stata is deleting the familyfirm variable due to collinearity.
How should I test this model? I want to test whether family firms performed better or not. How do I include the state-time fixed effects and industry fixed effects? I do have an industry, state and time variable.
Last question: how do I test for heteroskedasticity?
I am looking forward to your replies.
Best regards,
Lucas
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