For my thesis I am using as dependent variable the fraction of cash as part of the total price offered by the bidder. So, it's a fractional response that lies between [0,1]. I am not sure which regression should I use in Stata.
Also, my sample comprises 500 acquisitions in Europe announced in the period 2002-2016 from companies in different sectors (some companies have multiple acquisitions). The professor told me I should "control for year and industry (Fama French 12 - ffinds) fixed effects and adjust heteroskedasticity-robust standard errors for bidder clustering".
Here is what I have tried to do:
fracreg logit Y X1 X2 i.Year i.ffinds, vce(cluster ID)
glm Y X1 X2 i.Year i.ffinds, family(binomial) link(logit) robust nolog, but I cannot cluster for ID
- I have tried to use
xtlogit, but I am not able to apply it to multiple fixed effects
Which one is the correct approach? Also, using
i.ffinds I have too many dummies in the output. Is there a way to suppress them (like the option
absorb used with