Dear all,
I am reaching out because I would need some clarifications for my regression model for my thesis.
The model that I am using is an ordered probit panel regression. The dependent variable is international ambidexterity which is binned in 5 groups in an ordinal scale, while the independent variables are continuous variables that indicate the level of gender, age and racial diversity in the top management team (TMT) of a firm.
My confusion comes from the fact that stata only allows me to use a random effect model, however I have reasons to believe that there are entity and time fixed effects. These are the type of industry (11 types) and the time (period is 2013-2018).
On this forum I already I found this: "there is no option for a fixed effects ordinal logistic regression of panel data in Stata. And to my knowledge it is not available anywhere else either. Last I heard, nobody has ever found a computation that will estimate such a model. I do not know what the technical problems are that make this so difficult (or perhaps, in principle, impossible). So if an ordinal logistic model is truly appropriate for your situation, you really don't have a choice about FE vs RE."
That is also why I went ahead with the random effect model, but I also included time and industry dummies. Based on the regression results, the model seems to fit the data. If I don't include the industry and time dummies, however, the model is insignificant.
My question is then: does it make sense to do what I am doing?
I am reaching out because I would need some clarifications for my regression model for my thesis.
The model that I am using is an ordered probit panel regression. The dependent variable is international ambidexterity which is binned in 5 groups in an ordinal scale, while the independent variables are continuous variables that indicate the level of gender, age and racial diversity in the top management team (TMT) of a firm.
My confusion comes from the fact that stata only allows me to use a random effect model, however I have reasons to believe that there are entity and time fixed effects. These are the type of industry (11 types) and the time (period is 2013-2018).
On this forum I already I found this: "there is no option for a fixed effects ordinal logistic regression of panel data in Stata. And to my knowledge it is not available anywhere else either. Last I heard, nobody has ever found a computation that will estimate such a model. I do not know what the technical problems are that make this so difficult (or perhaps, in principle, impossible). So if an ordinal logistic model is truly appropriate for your situation, you really don't have a choice about FE vs RE."
That is also why I went ahead with the random effect model, but I also included time and industry dummies. Based on the regression results, the model seems to fit the data. If I don't include the industry and time dummies, however, the model is insignificant.
My question is then: does it make sense to do what I am doing?
Comment