I have the results from xtabond2 as follows:
Code:
Dynamic panel-data estimation, two-step system GMM ------------------------------------------------------------------------------ Group variable: firmid Number of obs = 370 Time variable : year Number of groups = 56 Number of instruments = 40 Obs per group: min = 2 F(28, 55) = 17.64 avg = 6.61 Prob > F = 0.000 max = 9 ------------------------------------------------------------------------------ | Corrected lnTobin | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- lnTobin | L1. | .3589312 .1495623 2.40 0.020 .0592016 .6586608 | PerFD | -1.529385 .9790586 -1.56 0.124 -3.491462 .4326921 After | -.2640213 .1342461 -1.97 0.054 -.5330566 .005014 AfterFD | 2.464606 1.261673 1.95 0.056 -.0638425 4.993055 PerInD | .4815669 .6739103 0.71 0.478 -.8689795 1.832113 Dual | -.0423404 .2274878 -0.19 0.853 -.4982362 .4135553 lnCEOtenure | .019317 .0855446 0.23 0.822 -.1521183 .1907522 FCEO | .0934513 .3517923 0.27 0.792 -.6115562 .7984589 bsize | 1.34156 .6865983 1.95 0.056 -.0344134 2.717534 lnage | -.0837236 .0475913 -1.76 0.084 -.1790987 .0116515 Firmsize | -.0796772 .0762127 -1.05 0.300 -.2324109 .0730566 blev | .0898659 .3326785 0.27 0.788 -.5768368 .7565685 y2001 | .0924929 .5832582 0.16 0.875 -1.076383 1.261369 y2002 | -.0795403 .3058306 -0.26 0.796 -.6924385 .533358 y2003 | .2306446 .1815684 1.27 0.209 -.1332266 .5945159 y2004 | .232103 .1600517 1.45 0.153 -.0886478 .5528537 y2005 | .1602183 .0964058 1.66 0.102 -.0329833 .3534199 y2006 | .2876385 .0717168 4.01 0.000 .1439149 .4313621 y2007 | .2983802 .0771674 3.87 0.000 .1437333 .4530272 y2009 | .2357406 .0857651 2.75 0.008 .0638634 .4076177 y2010 | .2821254 .0938799 3.01 0.004 .0939859 .470265 y2011 | .2311672 .0806831 2.87 0.006 .0694747 .3928597 y2012 | .326781 .086148 3.79 0.000 .1541365 .4994255 y2013 | .2673544 .0890159 3.00 0.004 .0889627 .4457462 y2014 | .2717915 .1009934 2.69 0.009 .0693961 .4741868 y2015 | .174857 .1158495 1.51 0.137 -.0573106 .4070246 y2016 | .1760335 .1125244 1.56 0.123 -.0494705 .4015376 y2017 | .4763668 .1463013 3.26 0.002 .1831725 .7695611 _cons | -1.195517 1.267733 -0.94 0.350 -3.736111 1.345076 ------------------------------------------------------------------------------ Instruments for first differences equation Standard D.(After lnage 2000b.year 2001.year 2002.year 2003.year 2004.year 2005.year 2006.year 2007.year 2008.year 2009.year 2010.year 2011.year 2012.year 2013.year 2014.year 2015.year 2016.year 2017.year) GMM-type (missing=0, separate instruments for each period unless collapsed) L2.(AfterFD PerFD PerInD Dual lnCEOtenure FemaleCEO bsize Firmsize blev) collapsed L(2/3).lnTobin collapsed Instruments for levels equation Standard After lnage 2000b.year 2001.year 2002.year 2003.year 2004.year 2005.year 2006.year 2007.year 2008.year 2009.year 2010.year 2011.year 2012.year 2013.year 2014.year 2015.year 2016.year 2017.year _cons GMM-type (missing=0, separate instruments for each period unless collapsed) DL.(AfterFD PerFD PerInD Dual lnCEOtenure FemaleCEO bsize Firmsize blev) collapsed DL.lnTobin collapsed ------------------------------------------------------------------------------ Arellano-Bond test for AR(1) in first differences: z = -3.06 Pr > z = 0.002 Arellano-Bond test for AR(2) in first differences: z = -0.60 Pr > z = 0.547 ------------------------------------------------------------------------------ Sargan test of overid. restrictions: chi2(11) = 12.16 Prob > chi2 = 0.352 (Not robust, but not weakened by many instruments.) Hansen test of overid. restrictions: chi2(11) = 7.04 Prob > chi2 = 0.796 (Robust, but weakened by many instruments.) Difference-in-Hansen tests of exogeneity of instrument subsets: GMM instruments for levels Hansen test excluding group: chi2(1) = 3.88 Prob > chi2 = 0.049 Difference (null H = exogenous): chi2(10) = 3.16 Prob > chi2 = 0.977 gmm(lnTobin, collapse eq(diff) lag(2 3)) Hansen test excluding group: chi2(9) = 6.33 Prob > chi2 = 0.707 Difference (null H = exogenous): chi2(2) = 0.71 Prob > chi2 = 0.700 gmm(lnTobin, collapse eq(diff) lag(2 3)) eq(level) lag(1 1)) Hansen test excluding group: chi2(10) = 6.93 Prob > chi2 = 0.732 Difference (null H = exogenous): chi2(1) = 0.11 Prob > chi2 = 0.743
In addition, could you please give me interpretation of Difference-in-Hansen test of exogeneity? As far as I understand, it should be insignificant. However, from the table, GMM instruments for levels - Hansen text excluding group: chi2(1) =3.88 Pro>chi2=0.049. Does it matter?
Thank you very much in advance.
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