Dear all,
I have to do my dissertation about the effect of Bank's liquidity risk on syndicated loan pricing only in the US loan and US Banks. (covering 12-year period)
My dependent variable(y) is loan pricing (interest rate).
My independent variable(x) is bank liquidity risk. (my interest variable)
As I followed some literature, they use Pool OLS with robust standard errors and also added year fix effect as dummy variables.
Because borrower characteristics and loan purpose can affect loan pricing (y), I saw many papers also stated that they control for borrower characteristics and loan purpose.
(borrower characteristics such as assets, profitability, rating and loan purpose is dummy variables)
I am not sure whether my code in Stata for controlling these characteristics is only add all of these as independent variables or not?
My code is
" reg Loanpricing Liquidityrisk borrowercharacteristics loanpurpose i.year, vce(robust)"
Additionally, I am not sure whether I should cluster SE in BankID or add more control or fixed effects.
Please advise and Thank you in advance
Related Posts with Difference between Control variables and Fixed effects
Quadratic regression: adding CI to lpoly graphHello all, I am running a non-linear regression that looks like this: vcemway reg ln_y x x^2 i.yea…
carryforward stata 17Hi everyone, I used to work with the following command: bysort id: carryforward variable, replace bu…
Milliseconds problem with clockI am using Stata/SE 17.0 for Mac (Apple Silicon, Revision 05 Oct 2021) with a trivial example. My ra…
twoway : more marker symbol (or special character) ?Hello I'am trying to write a reusable comand (in Stata 15) to plot a twoway scatter plot (2 continu…
Generating idioskewI want to use below code to generate monthly idiosyncratic skewness which is equal to skewness of re…
Subscribe to:
Post Comments (Atom)
0 Response to Difference between Control variables and Fixed effects
Post a Comment