Correlation between variables

[yael]

Hello,

I am asking for your advice,

I have two independent variables with correlation of 0.5. The variables are as follows:

(1) Family ownership, which refers to the family % in ownership

(2) Founder, dummy variable with 1/0 if the manager is the founder

The correlation is 0.5 as in some firms this is the same person. If I want to check the "PURE" impact of each variable on the dependent variable, what you suggest me to do? (PURE means, for example, the real impact of being founder w/o the ownership too).

My first idea (that also checked) was to run the regression of founder impact only between similar ownship groups, but in this way I am loosing a lot of data that is not used and might help.

Can you please give any clue how to handle with it?

Thanks a lot! 

[PaigeMiller · Accepted solution]

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If I want to check the "PURE" impact of each variable on the dependent variable, what you suggest me to do? (PURE means, for example, the real impact of being founder w/o the ownership too).

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In my opinion, this cannot be estimated from the correlated data you have. In other words, the question is meaningless, and any attempts to answer the question exactly as asked are a waste of time.

The best you can do is come up with a model that involves both variables predicting the dependent variable, and not try to determine any "pure" impact.