simple probit model

[hussein bataineh]

Hi

please im following a paper where they use the (simple probit model) with a control for year and industry ,actually the type of data they have is panel data

I'm not sure what code should i need to use probit or xtprobit .they wrote in there paper we use (simple probit model) with a control for year and industry

.the paper menthion ( We estimate a simple probit model; .Industry and year fixed effects are included.(clustered at the firm level in model1 ) ) . as i tried xtprobit give us either (random effect or fixed effect)..can use use probit code with control .Industry and year fixed effects probit Y x1 x2 x3 i.industry i. year

Could you advice me what is the right approach

[George Ford]

https://discovery.ucl.ac.uk/id/eprint/1551672/1/main.pdf

[hussein bataineh]

Thank you immensely for sharing your wealth of knowledge

as i read when we say simple probit model with controls for industry and year fixed effects, and clustering at the firm level we mean by it pooled probit model with controls for industry and year fixed effects, and clustering at the firm level? is tis this is the case

probit probit Y x1 x2 x3 i.industry i. year , robust cluster (id)

what is you opinion please

[George Ford]

use probitfe

[Jeff Wooldridge]

Hussein: About how many firms do you have per industry? You probably should have something like 20, preferably more, to ensure adding industry fixed effects doesn't cause an incidental problems. The command in #3 will work (although "robust" is redundant).

[hussein bataineh]

Thanks professor Jeff for your suggestions . yes it work

probit hard_final_Exact_new csopresence1 Firm_Size_w ROA_w Leverage_w Market_book_four_w Non_pension_CFO_w STD_CFO_w Board_Independence_w BoardSize_w Gender_Diversity_w Fund_Status_w FUNDING_RATIO_w Platn_Size_w CSR_Committee SustainabilityScore_w i.year i.ff_12 , robust cluster (id)


My question what we mean when we say simple probit model with controls for industry and year fixed effects, and clustering at the firm level ? does it is the same of pooled probit model with controls for industry and year fixed effects, and clustering at the firm level? is this this is the case


Thanks a lot