Hello everyone,
I am writing a dissertation about Capital Structure and determinants of differentiation across industries.
Panel data: 6.000 companies, 5 years (2013-2017), 3 depended viariables(leverage, long leverage and short leverage), 6 independed variables and three dummies as I have data for 4 sectors.
I am a new user in Eviews and I face two difficulties.
1. The first problem is that I made an import all data from an excel file and I'm not sure if eviews recognizes the dummies as dummies and not as values (between 0 to 1) which come from independed variables. I tried to generate dummies in eviews but in panel data form the sample has to do only with the years and not with rows. Specifically, I have 5 years,1500 companies for each sector, so the first dummy which refers to first sector exists from row 1 to 7500, the second dummy from 7501 to 15.000 etc.
2. The second issue is that when i tried to run a regression in cross section fixed model effect the results were significantly better and look artificial to me without including dummies but when I put them in the estimated equation model a message "near singular matrix appeared.
Finally I have been advised to use:
Method: EGLS
GLS weights: Cross-section weights
coef cov method: White cross-section
Can someone please suggest if this is the right way to improve my regression?
EVIEWS REGRESSION PANEL DATA
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