Hi - I am working with Panel data comprising 820 companies across 19 years. My data includes financial parameters such as revenue, leverage, Return on Sales etc. Iw ill be running panel data fe regression. I wanted to know whether I should normalise all my variables before running the xtreg?
Even before waiting for a response on this forum, I actually tried normalising the Revenue variable through a log transformation. Rather strangely, before and after the transformation, the Pr(skewness) and Pr (Kurtosis) remained 0 (zero.) Please refer to results pasted below. I would imagine that LnRev should show the normal transformation results.
.. sktest Revenue
Skewness and kurtosis tests for normality
----- Joint test -----
Variable | Obs Pr(skewness) Pr(kurtosis) Adj chi2(2) Prob>chi2
-------------+-----------------------------------------------------------------
Revenue | 10,904 0.0000 0.0000 . .
. sktest LnRev
Skewness and kurtosis tests for normality
----- Joint test -----
Variable | Obs Pr(skewness) Pr(kurtosis) Adj chi2(2) Prob>chi2
-------------+-----------------------------------------------------------------
LnRev | 10,722 0.0000 0.0000 565.59 0.0000
.
Related Posts with Normalizing Variables
ivprobit or cmp (probit cont)?Dear all, I have a binary DV with an endogenous X which I instrument with an interaction variable i.…
Structural VAR with IV?Dear all, When it comes to Structural VARs, Stata provides the svar command, and there is a very go…
Extracting and using variables from different stata files of the same survey datasetHi All, I'm trying to perform a survey data analysis, but these data came in 35 different stata fil…
How to split string variable?Dear all, how to transform " a bc d " into "a b c d"? Code: * Example generated by -dataex-. For m…
xtdidreAfter executing xtdidregress, I do estat trendplots. It gives me "treatment assignment times vary; n…
Subscribe to:
Post Comments (Atom)
0 Response to Normalizing Variables
Post a Comment