For my thesis i'm trying to estimate the effect of several variables on the recommendation level of analysts artound Mergers and Acquisitions. My dependend variable is 'recommendation' which can be (a) upgraded (b) unchanged (c) downgraded. I have several independend variables like payment, firm size ect.
Because my depended variable is ordinal and discrete, I would like to run an ordered logit model (ologit in stata). My professor wants me to add fixed effects for industry and if possible for the year.
I consider my data as non-panel data, because I'm looking on recommendation levels and i'm not comparing them over time. but, as far as I know, you can only run fixed effects on panel data, is this correct?
I'm using stata 13, and now I just add dummies for the 'fixed effect'. My code in stata looks like:
xi: ologit recommendation cash size value return i.industry i.year, cluster(industry)
is this enough to add the 'fixed effects' in my regression or is there a better way/solution to add industry effects and, if possible, year effects to my regression?