hi all, im new to Stata I will appreciate ur answer for solving my prob.
Im using three types of variables, 185 companies 11 industries over period 10 years, to see the impact of firm characteristics(independent variables) and industry impact(indep) on capital structure(dep) while controlling for corporate governance variables(control variables). Now my prob is mostly studies suggest fixed effect model and when I do "xtset id year" and run ylist xlist industrydummy clist, hausman test also suggest fixed effect model, but by doing fixed effect Stata omit results for industry impact and control variables, Now if I set panel only "year" then I get result for all variables but im not sure tht result are right or wrong becz in setting "xtset year" now the model suggest random effect instead of fixed effect and the rho is very small like .0007 (which I don't understand what it means. and this is also against the previous research in the area which suggest fixed effect model, my question are
1) how should I set panel for achieving my objective mentioned in first line
2) how can I get industry impact and clist impact using fixed effect model
3) what is the interpretation of low roh is it good or bad ?
4) I should use ylist xlist indlist clist for getting hausman test or only main variables like ylist xlist or ylist xlist indlist? and then decide which model is effective ? below image shows how I organized my data
Array