I'm trying to find the regression of my panel dataset. I'm trying to calculate the relationship between Acquisitions (DV) and CEO stock options (IV). I also have some control variables such as CEO age, CEO tenure, firm performance ROA, etc.
From what I saw on many articles, they use xtreg fe to find the regression. My problem is that I find a really high p-value when performing this. I'm not sure whether I'm doing everything correctly.
Could you please check out my code and whether I could do something to reduce this p-value. Also, are the control variables supposed to be added after the independent variable?
Thank you!
Code:
. xtreg Acquisitions Valueofstockoptionawards CEOage Marketvalueasofeveryfiscal FirmperformanceROA Stockownership CEOtenure, fe Fixed-effects (within) regression Number of obs = 614 Group variable: Company1 Number of groups = 155 R-sq: Obs per group: within = 0.0258 min = 1 between = 0.0711 avg = 4.0 overall = 0.0572 max = 5 F(6,453) = 2.00 corr(u_i, Xb) = -0.0956 Prob > F = 0.0646 -------------------------------------------------------------------------------------------- Acquisitions | Coef. Std. Err. t P>|t| [95% Conf. Interval] ---------------------------+---------------------------------------------------------------- Valueofstockoptionawards | 8.77e-09 3.54e-08 0.25 0.804 -6.08e-08 7.83e-08 CEOage | -.0125978 .0185358 -0.68 0.497 -.0490246 .0238291 Marketvalueasofeveryfiscal | 1.36e-11 5.36e-12 2.54 0.012 3.06e-12 2.41e-11 FirmperformanceROA | .0033968 .0101177 0.34 0.737 -.0164867 .0232803 Stockownership | 2.52e-09 1.14e-09 2.22 0.027 2.92e-10 4.75e-09 CEOtenure | -.0036318 .0165066 -0.22 0.826 -.0360708 .0288072 _cons | 1.764198 .994452 1.77 0.077 -.1901134 3.71851 ---------------------------+---------------------------------------------------------------- sigma_u | 1.5235763 sigma_e | 1.1794857 rho | .62526671 (fraction of variance due to u_i) -------------------------------------------------------------------------------------------- F test that all u_i=0: F(154, 453) = 6.58 Prob > F = 0.0000
0 Response to Fixed effect xtreg - Panel data - P-value
Post a Comment