How to create a binary series for probit/logit model?
Posted: Sat Apr 30, 2011 8:12 am
Hi,
I have a database of dividend paying and non-paying firms for 10 years, a total of 200 firms.
I would like to run a probit or logit regression, with paying/non-paying binary being the depedent variable, and variables such as firm size, profit, etc. being the independent.
Well, I have all the independent variables for each year, but how can I create the dependent binary variable? I know how many firms payed and did not pay dividends each year, but should I create one series for each year, or am I structuring this workfile entirely wrong (meaning I should not be working with years at all)?
any help would be great! thanks!
I have a database of dividend paying and non-paying firms for 10 years, a total of 200 firms.
I would like to run a probit or logit regression, with paying/non-paying binary being the depedent variable, and variables such as firm size, profit, etc. being the independent.
Well, I have all the independent variables for each year, but how can I create the dependent binary variable? I know how many firms payed and did not pay dividends each year, but should I create one series for each year, or am I structuring this workfile entirely wrong (meaning I should not be working with years at all)?
any help would be great! thanks!