A researcher builds a model in which a firm s liquidity ratio depends on the firm
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Question:
- A researcher builds a model in which a firms liquidity ratio depends on the firms profitability ratio and a dummy variable indicating whether the firm is listed on the stock exchange. In a second model,the researcher allows the firms listing status to influence the relation between its profitability and liquidity ratio. Explain how the researcher can build these two model.
Related Book For
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge
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