Running Panel Logistic Regression (STATA)

In accounting and finance (and indeed in other research areas too), there is a possibility for having a categorical dependent variable. For instance, research in auditor opinion or efficiency or board size determinants makes our dependent variable to be binary. However, we are afraid that there is no variance in our categorical dependent variables due to our panel data set. Then the question is β€œCan we run panel logistic regression?”

By far, my answer is still yes. Indeed, there is possibility of estimation bias due to the variance and standard errors post-estimation. So, how can we run panel logistic regression? Continue reading