Hello,
I'm doing a master thesis. I'm regressing CSR performance on Financial performance by OLS and included control variables like sales for size, ROA for profitability etc.
Controlling for industries is important in that kind of study but as my sample is very small (90 observations) my first impression is that there is no sense to do it. Indeed, as my sample is really small, controlling by industries for example with sic code have little sens given the facts that there are a lot of different industries so that I will have only 2,3 firms by industries and the measure for the industry will be poor. I'm not sure about my reasoning.
Can somebody help me with that matter
Thank you very much
I'm doing a master thesis. I'm regressing CSR performance on Financial performance by OLS and included control variables like sales for size, ROA for profitability etc.
Controlling for industries is important in that kind of study but as my sample is very small (90 observations) my first impression is that there is no sense to do it. Indeed, as my sample is really small, controlling by industries for example with sic code have little sens given the facts that there are a lot of different industries so that I will have only 2,3 firms by industries and the measure for the industry will be poor. I'm not sure about my reasoning.
Can somebody help me with that matter
Thank you very much