Hi everyone,
I'm running a regression on my panel data, where the results I'm getting on my debt ratio (independent variable) doesn't make any sense with regards to what it logically should be. I´m aiming to control for debt ratio when looking at a company's ESG score ranging from 0-100. When my dependent variable increases by one unit, the respective coefficient of the debt ratio shows 7.25. Any thoughts on why I get this large number? I´m running a xtreg controlled for fixed effects and robust standard error. Hope any of you can help me and have some tips on how to fix this issue.
Best regards,
Nicholas
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