Hello every one
I am using propensity score matching model for controlling for potential endogeneity issue.
my study about (( CEO compensation and real earnings management))
the problem is i do not understand how to create a treatment variable (dummy) and based on what.
I need some help in this issue
because i am not able to run my model with PSM at all.
my model as follow:
REM=CEOPAY+Boardsize+CEOExperise+CEOgender+CEOage+boardindependence+firmsize+Leverage+ROA
please I want to know how to create treatment variable.
thanks in advance.