Dear reader,
For my robustness tests, I also have to include a 2SLS IV test. My main results are from the following regression command:
reg ROA i.Law##c.ESG Size Leverage sales_growth PPE i.Industry_n i.year, robust
where Law is the moderating variable that represents Legal legislation (common v.s. civil law) and ESG the ESG score ranging from 0-100. Now I am struggling on what command for the 2SLS to use. I have added a IV which is the Industry-year average ESG composite score. Without using the interaction term, I used the following command for 2SLS that used to work:
ivregress 2sls ROA Size Leverage sales_growth PPE Industry_n year (ESG = ESG_average), robust
I hope that there is someone that can tell me how to run the 2SLS with an interaction term like I have.
Thanks in advance!
For my robustness tests, I also have to include a 2SLS IV test. My main results are from the following regression command:
reg ROA i.Law##c.ESG Size Leverage sales_growth PPE i.Industry_n i.year, robust
where Law is the moderating variable that represents Legal legislation (common v.s. civil law) and ESG the ESG score ranging from 0-100. Now I am struggling on what command for the 2SLS to use. I have added a IV which is the Industry-year average ESG composite score. Without using the interaction term, I used the following command for 2SLS that used to work:
ivregress 2sls ROA Size Leverage sales_growth PPE Industry_n year (ESG = ESG_average), robust
I hope that there is someone that can tell me how to run the 2SLS with an interaction term like I have.
Thanks in advance!
