Hello,
First of all I'd like to apologize as my Eviews/Econometrics knowledge is quite low ... but I hope I might get some help from here.
I would like to ask for your support regarding the tests i have to make for the panel data I have. It includes the annual observations for 19 firms between years 2006 and 2009. The dependent variable is the firm's market value expressed as Market to Book Ratio (numeric) and the independent variables are 3 company return ratios (ROE, ROA and profit margin, also numeric values) and a corporate governance index (numeric as well).
I managed to import them correctly in Eviews 7 but as far as I read... I have to test stationarity (not sure as period is not very large, only 4 years)
Is it necessary to make the unit root test ? What normality test should I use? I read a few things on fixed and random effects but still cannot understand which one fits my case. I think it should be fixed effects as values do not vary extremely over time...
Please find my excel file attached.
Thank you in advance for your support,
Roxana
Panel data tests - beginner
Moderators: EViews Gareth, EViews Moderator
Panel data tests - beginner
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