Compare between groups

[yael]

Hello,

I need your help in comparing between groups.

I have 3 groups:

• Firms that were founded on 1930 (dummy variable FF with 1 for the relevant firm)
• Firms that were founded on 1970 (dummy variable FNF with 1 for the relevant firm)
• Other firms

The dependent variables is ROA and the code is:

proc reg data=sasuser.sasfile010916;

model roa = ff fnf Lnsalesgro lnassets RDAssets;

run;

If, for example, the coefficient of FF is 0.08 (significant) and for FNF is 0.01 (significant). That means that firms that were founded on 1930 have higher rate in 8% in ROA in relate to the 2 other groups?

Thanks for your help, it always great!

Yael

[PeterClemmensen · Accepted solution]

An estimate of .08 for the coefficient of FF means that in your model, an increase of 1 in FF yields an increse of .08 in ROA holding all other independent variables in your model fixed.