Hi,
I have a question in regards control variables. I am making a diff-in-diff model to measure the performance of high rated ESG firms relative to low rated ESG firms. I have included control variables for the different firms. My control variables do not change over time (short period).
It still makes sense to include these to control for if e.g., the performance of companies were affected by e.g., their size (control variable). Correct?
Thank you in advance!
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