Hi,

I'm currently working on impact of risk - taking behavior on firm growth, and here is my panel: (the number wasn't real)
NAME YEAR GROWTH INCOME AGE SIZE RISK PERFORMANCE
A 2000 12 8 6 6 3 4
A 2001 14 6 7 6 2 3
A 2002 15 9 7 6 2 2
A 2003 16 5 6 4 3 3
B 2000 14 3 4 3
B 2001 17 2 3 4
B 2002 13 5 2 2
B 2003 12 3 5 9
C 2000 22 2 6 3
C 2001 17 7 7 4
C 2002 22 4 4 5
C 2003 34 4 3 7
My panel is unbalanced.

According to XU Peng's paper, Risk taking and firm growth
RISK: the standard deviation of EBITDA(t)/Assets(t) over 4 years.
Performance : sum of EBITDA(t)/Assets(t) over 4 2000-2003.

So I calculated EBITDA/Assets of each firm each year.
Performance of 2000= sum(Ebitda/assets firm A 2000, ebitda/assets firm B 2000 and so on)
RISK 2000= stdev.p(Ebitda/assets firm A 2000, ebitda/assets firm B 2000 and so on)

4 rows, 4 year of RISK and PERFORMANCE

So my questions are:
1. Did I calculate RISK and PERFORMANCE right?
2. How can I regress those, with
growth= risk + control variables
performance=risk +control variable
risk = age + size + ownership+ leverage + income
3. How about auto-correlation Wooldridge test, White test and Variance inflation factor (VIF) test, are they can be run normally?

I'm a beginner and I do this research for requirement, so I don't know much about this. Thanks for your time. I'm appreciated any help.