Hi,

I am trying to estimate the impact of directors' remuneration on firm performance. My unbalanced data set comprises 1696 firms and 16 time periods (in particular, years). I have 7 independent variables in total. I run the following fixed effects regression and get the output as shown below:

Code:
0.000     .0016231     .002304
                     |
                Year |
               2002  |  -.0083236   .0174118    -0.48   0.633     -.042454    .0258068
               2003  |   -.019145   .0169778    -1.13   0.259    -.0524247    .0141347
               2004  |  -.0139476   .0167181    -0.83   0.404    -.0467183     .018823
               2005  |  -.0150235   .0167026    -0.90   0.368    -.0477638    .0177168
               2006  |  -.0114919   .0166968    -0.69   0.491    -.0442209     .021237
               2007  |  -.0138605   .0167118    -0.83   0.407    -.0466188    .0188977
               2008  |  -.0196656    .016721    -1.18   0.240    -.0524419    .0131107
               2009  |  -.0411978   .0167273    -2.46   0.014    -.0739866    -.008409
               2010  |  -.0305384   .0167311    -1.83   0.068    -.0633345    .0022577
               2011  |  -.0394524   .0167512    -2.36   0.019    -.0722879   -.0066169
               2012  |  -.0522873   .0167626    -3.12   0.002    -.0851451   -.0194294
               2013  |   -.056591   .0167667    -3.38   0.001    -.0894568   -.0237251
               2014  |  -.0634294   .0167744    -3.78   0.000    -.0963104   -.0305484
               2015  |  -.0646801   .0167838    -3.85   0.000    -.0975795   -.0317807
               2016  |  -.0638651   .0167829    -3.81   0.000    -.0967629   -.0309674
                     |
               _cons |  -.0861129   .0184653    -4.66   0.000    -.1223084   -.0499174
---------------------+----------------------------------------------------------------
             sigma_u |  .05913552
             sigma_e |  .04992925
                 rho |  .58381389   (fraction of variance due to u_i)
--------------------------------------------------------------------------------------
F test that all u_i=0: F(1263, 10458) = 6.72                 Prob > F = 0.0000
However, when I run the command xttest2 to check cross-sectional dependence, I get the following error:

Code:
xttest2

Error: too few common observations across panel.
no observations
r(2000);
What is the cause of this error and how can it be resolved?

Thanks!