Hi everyone
I am conducting a research whereby my dependent variable is the quality of the corporate annual report which take the values (1-60) and the focal independent variable is tenure years (1-9 years).
the relationship comes as significant before and after controlling for other determinants and industry dummy but not when I include the year dummy.
My command is as follows:
For the sake of simplicity I have omitted the control variables which ranges from binary to continuous variables.
Is it justified to ignore the year dummy and report the results on the grounds that my main effect is time variable (tenure)?
Many Thanks
I am conducting a research whereby my dependent variable is the quality of the corporate annual report which take the values (1-60) and the focal independent variable is tenure years (1-9 years).
the relationship comes as significant before and after controlling for other determinants and industry dummy but not when I include the year dummy.
My command is as follows:
Code:
xtreg Quality tenure CONTROLS SIC, re vce(cluster SIC)
Is it justified to ignore the year dummy and report the results on the grounds that my main effect is time variable (tenure)?
Many Thanks
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