Hi All,
In the below example I want to see the interaction effects of two firm types i.e. "Family_firm" (1=family firm, 0 otherwise) and "Public_Firms" (1=public firms, 0 otherwise) those have "Political_Connection" (1=have political connection, 0 otherwise). However, the regression always drop the value "1" of "Political_Connection" and value "1" of these two firm types (as example in red below). Therefore, I cant evaluate such effects on these two different firm types. Please advice how should i deal with this problem. I used Feasible Generalized Least Square Regression and the command is:
xtgls ROA i.Family_firms##i.Political_Connection i.Public_Firms##i.Political_Connection...(with control variables, but i removed to make it short here).
Thank you all in advance!!
Jackson
In the below example I want to see the interaction effects of two firm types i.e. "Family_firm" (1=family firm, 0 otherwise) and "Public_Firms" (1=public firms, 0 otherwise) those have "Political_Connection" (1=have political connection, 0 otherwise). However, the regression always drop the value "1" of "Political_Connection" and value "1" of these two firm types (as example in red below). Therefore, I cant evaluate such effects on these two different firm types. Please advice how should i deal with this problem. I used Feasible Generalized Least Square Regression and the command is:
xtgls ROA i.Family_firms##i.Political_Connection i.Public_Firms##i.Political_Connection...(with control variables, but i removed to make it short here).
Thank you all in advance!!
Jackson
| VARIABLES | ROA |
| 0b.Family_firms#0b.Political_Connection | 0 |
| (0) | |
| 0b.Family_firms#1.Political_Connection | 0.799*** |
| (0.172) | |
| 1.Family_firms#0b.Political_Connection | -0.224 |
| (0.217) | |
| 1.Family_firms#1.Political_Connection | 0 |
| (0) | |
| 0b.Public_Firms#0b.Political_Connection | 0 |
| (0) | |
| 0b.Public_Firms#1.Political_Connection | 0.831*** |
| (0.0868) | |
| 1.Public_Firms#0b.Political_Connection | 0.598*** |
| (0.205) | |
| 1o.Public_Firms#1o.Political_Connection | 0 |
| (0) | |
| Debt_to_Asset | -7.859*** |
| (0.157) | |
| Debt_to_Equity | -0.443*** |
| (0.0271) | |
| ln_TT_Asset | 0.00866 |
| (0.0414) |
