Hi All,

I have an unbalanced panel data (T=9, N=85). I want to run Fixed effect regression to examine the influence of the characteristics of the supervisory board (SB) and the management board (MB) on the firm’s financial performance (FP). Two possible ways to run the regression.

First, by running two separate estimations. One for the influence of SB characteristics (16 variables including the control variables) on the FP, and the other one for the influence of MB characteristics (16 variables including the control variables) on the FP.

Second, by running one regression combines the characteristics of both the SB and the MB (23 variables including the control variables) on the FP.

The theoretical basis of the relationship supports both ways. However, I don’t know which way is better from a statistical point of view. Is there any Stata command which can helps for this purpose?