i have companies data as dependent variable for 10 years across 200 companies (all companies from one country only) whereas the macro economic variables are for 10 years as independent variable (again the same one country).
can this analysis be completed using panel data technique? if yes, then how the data will be arranged first because the macro variables are same for each company in sample for 10 years. or is there any alternative to study the influence of macro variables on company's financial ratios.
can someone please help with my analysis?
Dear Shweta,
Panel regression is possible with data of 200 companies over a 10 year period. But I didn't quite understand your question. How will you run a regression with same value of independent variables for all companies for 10 years?
You can read my paper available on the below link in which I have used panel regression on data consisting of financial ratios of 100 top NSE companies.
https://link.springer.com/article/10.1007/s13520-016-0064-4
Hope it helps.
Hemlata
There is a slight problem with panel repression: YOU ARE NOT SAMPLING FROM THE SAME POPULATION. If you still do that then you qualify for the honor of being a member of the Danny Thomas school of statistics
Dear Ms Hemlata and Mr Ramesh
thanks for showing interest in my question.
I basically want to study the influence of country specific variables on the financial ratios of 200 nse companies over a period of 10 years. Now problem is although the companies data for 10 years does form a panel data but the independent variables I.e country specific variables cannot be fit in above companies data. As the study relates to only country, so country data is same for all the companies. How do I study this relationship then?
Dear Shweta,
Please define your research question sharply. You may refer to papers conducting similar studies for your reference. Data stacking is a minor issue.
Typically, in panel data, we stack our data in the appended manner:
Co.1 Year 1
Year 2
........
Year 10
Co. 2 Year 1
Year 2
.......
Year 10
I use panel data analysis for most of my work. You may refer to my papers for further clarity.
Regards
Arunima
Dear Shweta,
You can study this relationship by running a regression for the vector of a ratio for n years as a dependent variable with the company data for 10 years & country specific data for 10 years as a matrix of independent variables. You will have as many regressions as the number of ratios & you can interpret the results either individually or collectively, if they show similar relationships.
Hemlata
- Badges
- Science topic
- Similar topics
- Econ
- Business Economics