Dear all, could you please educate me regarding when we say the within-FE-group variation of explanatory variables is too low to have reliable estimates?
I intend to specify an OLS model with industry fixed effect. Below tabulates the pooled and within-FE variations of a set of explanatory variables.
Do you think low within-FE variation is an issue for my analyses?
Thank you!
I intend to specify an OLS model with industry fixed effect. Below tabulates the pooled and within-FE variations of a set of explanatory variables.
Do you think low within-FE variation is an issue for my analyses?
Thank you!
Pooled Sample Summary Statistics | Within-FE (ioSecTRG) Summary Information (among 13 groups) | |||||||
N | Mean | Std. Dev. | Singletons | # of FE groups excluding singletons | Zero Within-FE Variation | Within-FE Std. Dev. | Within-FE Std. Dev. รท Pooled Std. Dev. | |
High | 502 | 0.50 | 0.50 | 2 | 11 | 1 | 0.20 | 39% |
Complem | 502 | 0.99 | 0.18 | 2 | 11 | 0 | 0.11 | 59% |
GeoDist | 502 | 5.75 | 2.17 | 2 | 11 | 0 | 0.65 | 30% |
CBank | 502 | 0.02 | 0.15 | 2 | 11 | 5 | 0.04 | 27% |
CAudit | 502 | 0.24 | 0.42 | 2 | 11 | 3 | 0.11 | 27% |
AcqSize | 502 | 8.55 | 1.83 | 2 | 11 | 0 | 0.72 | 39% |
AcqRunup | 502 | 0.00 | 0.11 | 2 | 11 | 0 | 0.01 | 13% |
AcqQ | 502 | 1.75 | 1.01 | 2 | 11 | 0 | 0.56 | 56% |
AcqReturn | 502 | 0.04 | 0.28 | 2 | 11 | 0 | 0.07 | 25% |
TrgSize | 502 | 6.45 | 1.68 | 2 | 11 | 0 | 0.60 | 36% |
TrgRunup | 502 | 0.04 | 0.19 | 2 | 11 | 0 | 0.02 | 12% |
TrgQ | 502 | 1.77 | 1.23 | 2 | 11 | 0 | 0.63 | 52% |
TrgReturn | 502 | 0.00 | 0.42 | 2 | 11 | 0 | 0.08 | 20% |
Cash | 502 | 0.37 | 0.48 | 2 | 11 | 2 | 0.25 | 51% |
Stock | 502 | 0.25 | 0.43 | 2 | 11 | 5 | 0.19 | 44% |
Compete | 502 | 0.04 | 0.20 | 2 | 11 | 5 | 0.05 | 25% |
Tender | 502 | 0.17 | 0.37 | 2 | 11 | 7 | 0.18 | 48% |
Crisis | 502 | 0.09 | 0.28 | 2 | 11 | 7 | 0.05 | 19% |
PostCrisis | 502 | 0.68 | 0.47 | 2 | 11 | 2 | 0.09 | 20% |
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