Hello everybody,
I am a bit unsure about the construction of my regression and need some help. I have hypothesized that family businesses perform better in performance (innovation) than non-family businesses. For this purpose I created a dummy variable "Family-Firm" (0=non-family-firm; 1=family-firm). This serves as a moderator for the regression. My question now is whether the function can be correct in this way?

1)

HTML Code:
xtreg N_Totalpatents_l3 c.No_Deals#Family_Firm xrdat_w industry_q_w firm_size_log , re
2)
Or does the Independent Variable have to be used again before the interaction?
HTML Code:
  xtreg N_Totalpatents_l3 No_Deals c.No_Deals#Family_Firm xrdat_w industry_q_w firm_size_log , re
I do not understand the difference exactly. Except that the results are no longer significant in the 2nd form.

Thanks a lot for your help! Sven

Same Question here:
https://stackoverflow.com/questions/...-term-in-stata