Best regression for model with dummy on the independent side

[rjoreilly]

Hello,

I am using Eviews 7 and I was hoping to receive some guidance on what sort of regression would be best suited to my data.

I am trying to show the relationship between derivative usage and external financing. My data set is the all non financial firms in the FTSE 350 from 2009 to 2011.

External Finance (Dependent Variable)

Derivative usage (a dummy variable 1 for yes 0 for no derivative usage)
Research and Development expenditure (scaled by total assets)
Cash Deficit (The sum of capital expenditures, acquisitions and common dividends, less the sum of operating income before depreciation and amortization and depreciation scaled by total assets)
Working Capital: The ratio of working capital to total assets
Dividend Yield: Dividend per share divided by stock price
Sales Growth: The average growth in sales over the previous year
Size (log of total assets in eviews, unlogged at the moment)

I have attached my data set.

I thought that this would be ideal for a panel regression, however because of my dummy independent variable, I seemed unable to do run any fixed or random effects. Would a simpler method be available? Maybe a pooled regression?

Can anybody suggest a work around for this? I hope I have provided enough information

Thanks and kind regards,

[rjoreilly]

Any pointers on this?