I am looking to analyse the impact (causal effect) of a conflict on firm valuation (using daily prices) for a sample of around 800 firms (I currently have this data over a sample period of around 365 days) so its panel data.
I want to analyse the overall impact but also identify the difference in impact between the industries (maybe some industries got affected to lesser/more extent).
However, i cannot decide on the most appropriate methodology to use. I am split between using an event study methodology or panel data methodology using fixed effects.
Both seem to have their pros and cons. Would panel fixed effects methodology be appropriate given the short time frame (only a few days around the start of the war)?
Any help is appreciated!
I want to analyse the overall impact but also identify the difference in impact between the industries (maybe some industries got affected to lesser/more extent).
However, i cannot decide on the most appropriate methodology to use. I am split between using an event study methodology or panel data methodology using fixed effects.
Both seem to have their pros and cons. Would panel fixed effects methodology be appropriate given the short time frame (only a few days around the start of the war)?
Any help is appreciated!
