Hello,

I have a panel data with 90 companies across 5 years. I have the financial variables for each firm each year and a dummy variable Invest equal to 1 if the firm has received an investment. I want to compute the probability for a firm i to go from in category 1 to switch to category 2, knowing that there are 2 categories (high revenue and low revenue firms).
I did some research and it appears that Markov switching model is the correct one to use. Could you please confirm that?
I am not sure how to run this kind of analysis on stata. Could you please help ? How should I organise my data and what is the correct function to use ?
This is a sample of my data thanks

Code:
* Example generated by -dataex-. To install: ssc install dataex
clear
input str12 Country str116 Company int FiscalYear byte Invest float(Currentassets_n CashandCashEquivalents_n NetCash_n EBITDA_n Netsalesrevenue_n GrossProfitMargin_n)
"Mauritius"    "Abc Motors Company Limited"                                                               2014 0  19.98      0  -22.28      .   44.82   100
"Mauritius"    "Abc Motors Company Limited"                                                               2015 0  19.61      0  -27.88      .   52.63   100
"Mauritius"    "Abc Motors Company Limited"                                                               2016 0  25.27      0  -34.43      .   51.77   100
"Mauritius"    "Abc Motors Company Limited"                                                               2017 0  24.85      0  -33.07      .   51.55   100
"Mauritius"    "Abc Motors Company Limited"                                                               2018 0  26.34      0  -36.42      .   55.11   100
"Mauritius"    "Abc Motors Company Limited"                                                               2019 0  28.78      0  -36.19      .    56.7   100
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2014 0 561.73  26.48 -224.35      .  513.37 38.72
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2015 0 443.09  105.2 -138.66 147.43  481.37 38.93
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2016 0 388.63  98.24 -115.53 131.77  482.81 35.45
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2017 0  285.6  62.88  -91.67 120.38  406.28 35.73
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2018 0 342.22  46.47 -121.66 137.61  425.51 36.67
"Egypt"        "Abu Qir Fertilizers & Chemical Industries Co S.A.E (??? ??? ??????? ????????? ?????????)" 2019 0 454.36  24.14 -135.94 171.37  487.14  41.1
"Nigeria"      "Academy Press Plc"                                                                        2014 0   7.21    .09  -19.13   2.87   15.08 25.13
"Nigeria"      "Academy Press Plc"                                                                        2015 0   5.49    .09  -17.37    4.2   14.17 43.42
"Nigeria"      "Academy Press Plc"                                                                        2016 0   6.55    .14  -14.82   2.71   10.42 45.24
"Nigeria"      "Academy Press Plc"                                                                        2017 0   3.82    .12   -9.69   1.23    7.56  37.1
"Nigeria"      "Academy Press Plc"                                                                        2018 0   3.55     .2   -7.73   1.98    7.13  40.7
"Nigeria"      "Academy Press Plc"                                                                        2019 0   3.92    .07   -7.61    1.2    7.95 35.01
"South Africa" "Acsion Limited"                                                                           2014 0  22.47  20.16  -63.67      .       0     .
"South Africa" "Acsion Limited"                                                                           2015 0   3.61   1.46  -72.73   6.06     9.8   100
"South Africa" "Acsion Limited"                                                                           2016 0   2.39   1.01  -78.06  21.51   33.56   100
"South Africa" "Acsion Limited"                                                                           2017 0   3.44   1.27  -96.63   24.9   36.79   100
"South Africa" "Acsion Limited"                                                                           2018 0  20.78  18.06 -132.52  30.11   44.71   100
"South Africa" "Acsion Limited"                                                                           2019 0  12.04   5.35  -172.2  34.28    48.1   100
"South Africa" "Adapt It Holdings Limited"                                                                2014 0   10.5    1.5   -9.21   5.37    39.1 45.45
"South Africa" "Adapt It Holdings Limited"                                                                2015 0  12.57   2.37  -18.51   9.06   50.28 50.96
"South Africa" "Adapt It Holdings Limited"                                                                2016 0  17.58   5.26   -28.6  11.78   54.94 60.96
"South Africa" "Adapt It Holdings Limited"                                                                2017 0  27.19    7.5   -23.5  14.36   73.02 62.17
"South Africa" "Adapt It Holdings Limited"                                                                2018 0  28.49    6.3  -41.89  19.61  102.97 60.17
"South Africa" "Adapt It Holdings Limited"                                                                2019 0  32.81   4.13  -62.19  16.48  100.35 56.05
"South Africa" "Adcock Ingram Holdings Limited"                                                           2014 0  251.2  23.35  -221.4   6.08  347.93 35.87
"South Africa" "Adcock Ingram Holdings Limited"                                                           2015 0 232.15  12.04 -191.71  69.01  483.13 43.04
"South Africa" "Adcock Ingram Holdings Limited"                                                           2016 0 234.43  13.59 -147.78   53.7  410.56 40.44
"South Africa" "Adcock Ingram Holdings Limited"                                                           2017 0 254.28  45.26 -108.45  66.15  444.94  40.7
"South Africa" "Adcock Ingram Holdings Limited"                                                           2018 0 263.25  29.44  -151.6  83.37  508.16 41.82
"South Africa" "Adcock Ingram Holdings Limited"                                                           2019 0 251.52  31.68 -106.07  85.44  505.17 41.57
"South Africa" "Adcorp Holdings Limited"                                                                  2014 0 235.86     44 -211.95  42.91 1178.34 16.99
"South Africa" "Adcorp Holdings Limited"                                                                  2015 0 262.38  59.12 -200.67  54.59 1215.45 17.33
"South Africa" "Adcorp Holdings Limited"                                                                  2016 0 231.82  52.42 -210.77  46.62 1153.92 16.15
"South Africa" "Adcorp Holdings Limited"                                                                  2017 1 233.91   41.4 -208.61  19.39 1126.88 14.88
"South Africa" "Adcorp Holdings Limited"                                                                  2018 1 237.94  30.61 -196.15  25.41 1179.62 14.59
"South Africa" "Adcorp Holdings Limited"                                                                  2019 1 189.72  26.29    -154  34.24 1111.77 13.49
"South Africa" "Adrenna Property Group Limited"                                                           2014 0   1.02    .01   -12.2   1.23    3.07 90.52
"South Africa" "Adrenna Property Group Limited"                                                           2015 0    .47    .01   -9.98      .    2.39 83.52
"South Africa" "Adrenna Property Group Limited"                                                           2016 0    .57    .07   -8.49      .    1.72   100
"South Africa" "Adrenna Property Group Limited"                                                           2017 0    .73    .02   -7.39      .    1.83   100
"South Africa" "Adrenna Property Group Limited"                                                           2018 0   1.61    .54   -8.03   1.29     2.1   100
"South Africa" "Adrenna Property Group Limited"                                                           2019 0    .97    .34   -9.11    .73    2.05   100
"South Africa" "Advanced Health Ltd (AVL)"                                                                2014 0  15.55  13.56    8.15   2.58   14.99 50.92
"South Africa" "Advanced Health Ltd (AVL)"                                                                2015 0  11.68   9.42    4.15   2.62   15.74  55.3
"South Africa" "Advanced Health Ltd (AVL)"                                                                2016 0   7.44   3.58   -9.84    -.3   16.64  50.9
"South Africa" "Advanced Health Ltd (AVL)"                                                                2017 1   6.78   3.09  -15.61  -1.68   22.71  49.9
"South Africa" "Advanced Health Ltd (AVL)"                                                                2018 1   7.04   3.01  -17.59   -.63    31.8  51.3
"South Africa" "Advanced Health Ltd (AVL)"                                                                2019 1   7.53    3.2  -19.46    .79   34.29 52.98
"Mauritius"    "Africa Clean Energy Solutions Limited"                                                    2019 0     .5    .01    -.56      .       0     .
"South Africa" "African & Overseas Enterprises Limited"                                                   2014 0  14.58   5.53     .12    .09   47.36 49.24
"South Africa" "African & Overseas Enterprises Limited"                                                   2015 0  14.37   6.68    1.45   4.92    45.1 61.62
"South Africa" "African & Overseas Enterprises Limited"                                                   2016 0  12.59   5.73     .37   2.27    37.1 58.08
"South Africa" "African & Overseas Enterprises Limited"                                                   2017 0  13.07   4.58    -.73   1.81   38.86 59.96
"South Africa" "African & Overseas Enterprises Limited"                                                   2018 0  14.04   5.06    -.54   3.08   45.66 59.01
"South Africa" "African & Overseas Enterprises Limited"                                                   2019 0  12.62   3.93   -7.85   5.33   47.87 56.03
"South Africa" "African Dawn Capital Limited"                                                             2014 0   8.42     .5   -5.79  -4.27     .96   100
"South Africa" "African Dawn Capital Limited"                                                             2015 0   6.86   1.34   -4.53  -4.05    1.53  98.4
"South Africa" "African Dawn Capital Limited"                                                             2016 0   3.57    .19   -3.44  -1.95       1 93.76
"South Africa" "African Dawn Capital Limited"                                                             2017 0   3.77    .15   -3.26  -1.67    1.12  97.7
"South Africa" "African Dawn Capital Limited"                                                             2018 0   1.98    .04   -1.24  -1.85     .61 98.36
"South Africa" "African Dawn Capital Limited"                                                             2019 0   1.27    .17    -.71  -1.29     .26   100
"Zimbabwe"     "African Distillers Limited"                                                               2014 1  13.32    .45   -5.99   3.46   23.95 49.12
"Zimbabwe"     "African Distillers Limited"                                                               2015 1  11.27    .51   -6.76   4.95   25.07 55.25
"Zimbabwe"     "African Distillers Limited"                                                               2016 1  11.19   2.54   -3.51   3.68   22.04 54.79
"Zimbabwe"     "African Distillers Limited"                                                               2017 1  16.55   4.25   -3.93      5   24.89 52.49
"Zimbabwe"     "African Distillers Limited"                                                               2018 1  30.78   2.83  -14.34   8.16   30.59  55.6
"Zimbabwe"     "African Distillers Limited"                                                               2019 1  59.68  11.86    -8.9  26.27   60.55 68.18
"South Africa" "African Media Entertainment Limited"                                                      2014 0  15.46  10.03    1.85   6.35   23.93 74.32
"South Africa" "African Media Entertainment Limited"                                                      2015 0  15.22   8.65    -.37   6.71   22.99 76.03
"South Africa" "African Media Entertainment Limited"                                                      2016 0   10.8   7.66    2.38   5.31   17.28 76.04
"South Africa" "African Media Entertainment Limited"                                                      2017 0  12.46   8.85    3.11   5.06   16.97 74.99
"South Africa" "African Media Entertainment Limited"                                                      2018 0  12.84      8     .61   5.12   20.19 69.91
"South Africa" "African Media Entertainment Limited"                                                      2019 0   9.39   5.51     .75   4.94   19.89 79.02
"South Africa" "African Rainbow Minerals Limited"                                                         2014 0 601.22 202.57 -587.92 577.24  962.77 36.04
"South Africa" "African Rainbow Minerals Limited"                                                         2015 0 461.99 184.39 -534.92 258.15   809.5 26.51
"South Africa" "African Rainbow Minerals Limited"                                                         2016 0 307.06  17.07 -710.36 153.82  603.47 24.05
"South Africa" "African Rainbow Minerals Limited"                                                         2017 0 325.11  29.74 -574.42 373.67  643.57 15.06
"South Africa" "African Rainbow Minerals Limited"                                                         2018 0 460.15 157.17 -370.39 553.83  674.88 29.21
"South Africa" "African Rainbow Minerals Limited"                                                         2019 0 571.43 240.09 -290.21 392.17  622.88 15.68
"South Africa" "Afrimat Limited"                                                                          2014 0   48.4   8.61  -54.82   33.7  189.01 29.05
"South Africa" "Afrimat Limited"                                                                          2015 0  43.69   6.79  -49.28  31.49  181.18 29.73
"South Africa" "Afrimat Limited"                                                                          2016 1  34.34   7.26  -37.42  29.48  145.84 31.49
"South Africa" "Afrimat Limited"                                                                          2017 1  57.61   18.8  -61.15  34.77  155.03 48.71
"South Africa" "Afrimat Limited"                                                                          2018 1  64.14   9.53  -91.14  36.36  181.87 48.96
"South Africa" "Afrimat Limited"                                                                          2019 1  64.62  13.74  -80.12  47.21  214.17 46.04
"South Africa" "Afrocentric Investment Corporation Limited"                                               2014 0  64.02  36.69   -4.59  45.97  188.46   100
"South Africa" "Afrocentric Investment Corporation Limited"                                               2015 0  46.54  27.29   -7.38  33.39  183.37   100
"South Africa" "Afrocentric Investment Corporation Limited"                                               2016 0  57.62  25.27  -76.19  26.69  217.24 81.99
"South Africa" "Afrocentric Investment Corporation Limited"                                               2017 0  87.27  27.65  -24.11  38.72  278.11 77.89
"South Africa" "Afrocentric Investment Corporation Limited"                                               2018 0  59.94  15.49   -23.1  49.52  327.32 78.05
"South Africa" "Afrocentric Investment Corporation Limited"                                               2019 0  76.73  18.75   -91.8  55.74  373.47 70.45
"South Africa" "Ah-Vest Limited"                                                                          2014 0   2.93      0   -3.91   -.94   11.91 32.03
"South Africa" "Ah-Vest Limited"                                                                          2015 0   2.77    .17    -4.6    .64    12.3 44.41
"South Africa" "Ah-Vest Limited"                                                                          2016 0    1.8    .05   -3.46    .39    9.82 33.75
end