Hello,
I need your advice,
I have 3 groups in my research: Firms that founded on 1930 (FF - dummy variable), Firms that founded on 1970 (FNF - dummy variable), and other firms.
I also have the continous variables that describe the largest ownership in the relevant firm, FOWN for FF firm and FNFOWN for FNF firms.
If I want to check the ownership impact on performance, should I run regression as:
proc reg data=sasuser.sasfile;
model performance = FOWN FNFOWN ;
run;
Or should I create a new variable named, for example, OWN, that reflect that largest owners in each firm but the code will be:
proc reg data=sasuser.sasfile;
model performance = OWN*FF OWN*FNF ; (I will create a new variable for each duplicated variables)
run;
Thanks for your help!!!!
I am assuming that your dummy variables are coded as 0/1 as PROC REG does not support a class statement.
I would recommed your first choice. You can also specify multiple model statements like this
proc reg data=sasuser.sasfile;
model performance = FOWN;
model performance = FNFOWN;
run;
Thanks for your answer
But my question is what is the difference between the two options I mentioned?
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