08 January 2021 0 6K Report

Hi,

I'm trying to do a Hausman test for checking endogeneity. I have cross sectional data with a matched pair design.

I'm using clogit for regression.

In understand that hausman test can be used as a post estimation test to check for endogeneity in STATA.

I have used the following commands, however hausman test requires two models to be specified. One before allccats and one after allcats.

a) clogit FFVsCF l_DirectorsTotalCompensation RoE RoA MVBV AvgAge BoardSize IndDirPRCT FeDirPRCT ExecDirPRCT CDual MLEV ABig4 NoBM, group(MatchID)

b) estimates store allcats

c)

d) hausman . allcats, alleqs constant

My question is which model to specify in the second round (refer to point (c) above).

Can anyone please guide me.

Best regards, Juhee

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