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I have an unbalanced panel dataset for a list of firms for the period extending from 2000-2015.

Set of standards issued in 2003, and the adoption is voluntary. Firms started to adopt in different years. I want to examine what's called timely loss recognition, and to do that, I need to use the below model:

ACC= DCFO + CFO + DCFO*CFO

So I will measure it one time for the adopters and the other time for the none adopters, and accordingly, I have applied the following model:

Code: gen DCFO_CFO= DCFO* CFOt1 xtreg ACC DCFO CFOt1 DCFO_CFO i.Year if Event==1, fe xtreg ACC DCFO CFOt1 DCFO_CFO i.Year if Event==0, fe

The variable of interest is DCFO_CFO. So, I need to get the difference between the coefficient of DCFO_CFO of adopters in the first model and the coefficient of non-adopters DCFO_CFO in the second model, and I need to show the significance for the difference. So, could you please tell me what is the code for this, please?

Many thanks in advance.

user323133
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    Does this answer your question? [What is a contrast matrix?](https://stats.stackexchange.com/questions/78354/what-is-a-contrast-matrix) – Dave Jun 09 '21 at 21:51

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