Solution for QID #115901: Given ESG score data, daily stock return data and industry c | StudyHelpMe

Given ESG score data, daily stock return data and industry companies operate in of 14 companies for 10 years, find and explain the relationship between daily return and ESG score. You need to create a categorical variable from industry variable (using dummy coding) and perform panel linear regression with dependent variable as stock daily return and independent variable ESG score with control variable industry. Choose which linear method applies here best (pooled, fixed, random) using appropriate tests. Also, check for any other assumptions that need to be true to use regression model (homoscedasticity, non-autocorrelation, etc.)