Good afternoon and thanks for already reading my problem. my question is: what model to use or what would you recommend.
I want to test if female ceo’s outperform male ceo’s. Return on assets (ROA) is my dependant variable. i have balanced panel data of 472 firms over a 5 year-period. i have multiple control variables + i created year dummies and industry dummies. This is because in most papers they do this to control for time effects and industry effects which makes sense.
however, i just cannot find an example or/and explanation as to what model to use. I have read many papers and they are contradicting about their models. For example, most use fixed effects model with dummies for industry.
Y(Firm Performance) = α+β1Female CEO + β2CEO Age +β3CEO Tenure+ β4Firm Age+β5Firm size + β6Leverage + Σβ7Year effect+ Σβ8Industry effect+ ε.
but if industry is a constant it doesnt make sense to put this in the regression. some say fixed effects with year+industry dummies and other say ols, but i have read that this doesnt make sense.
anyone with some advice? btw, if helpfull the programm i use to do the regression etc is SPSS.