Dear all,
I wonder if I can use PLS to analyze financing decisions of companies, especially the use of the US market. I have data of about 7000 company years (1998-2006). I have some indicators to measure the “attractiveness” of a capital market (this would be one latent variable). These indicators have often the same values for all companies during one year. And I have indicators to measure the need of capital for firms. Here each firm year has specific different values.
Finally I can measure the amount of capital which each firm raises in a particular year at US markets. The values are often “0” cause not so many companies in my sample raise money in the US annually. And the values can be up to 2000 (in million US-$).
I mostly read about the use of PLS in marketing where the sources of data are interviews. Do you think a path model can be used for the mention data? Do I maybe have to create categories for the risen capital instead of using the “real” values?
Thanks a lot!
Cheers Jan
