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Hello,

I'm investigating the influence of investment on the ownershipstructure of public companies. Now I would like to compare the means of investment and ownership concentration. It's a time series from 2006 to 2012. I would like to know if there is a difference between the means of investment between the companies that have a ownership concentration lower than 50% and higher than 50%. So how do I make this split in ownership concentration and how do I compare those means?

thanks in advance!

Suppose the series for investment is INVEST and the concentration series is CONCENT (which has the percentage concentration).

Open the INVEST series.

Click on View/Descriptive Statistics & Tests/Equality Tests By Classification...

Enter the expression:

CONCENT>50

in the Series/Group for classify edit field. You should be able to leave everything else as is since you only have two categories. Click on OK.

But how do I interpreted this? CONCENT 0 has a mean of 0.51 and concent1 has a mean of 0.54. Does the zero stands for <50% en the one for >50%?

thanks

Constant term (c) represents the cases of (concent<0.5) and therefore will be equal to 0.51. Coefficient of (concent>0.5), however, will give you the difference (i.e. 0.54-0.51=0.03). If the impact of owner concentration on investment differs between <50% and >50%, then you expect this coefficient to be statistically significant (e.g. p-value < 0.05).