I want to make a probit model with -xtprobit-, that uses takeover likelihood as dep.variables and governance variables and profitability variables as indep. variables, but I always receive the error message 198, "number of quadrature points must be less than or equal to number of observations".
I could not find out the source of the problem with the available help tools. Any ideas?
I think I have sufficient observations, but I am not sure about quadrature points, it is related to numerical integration
xtprobit takeovercompleted classifboard limabmeeting limabconsent goldenparac
> hute poisonpill ebit ebitda netincome netcashflow
number of quadrature points must be less than or equal to number of obs
Interestingly, if I use less indep. var. I receivee no error and receive this Stata output:
Re: Probit Model - error r(198) - Quadrature points
This is most likely caused by missing data in your predictor variables leading to cases being dropped. Try:
count if !missing(gvkey, takeovercompleted, classifboard, limabmeeting, limabconsent, goldenparachute, poisonpill, ebit, ebitda, netincome, netcashflow)