28/10/2026
📊 **Stata Research Case Study | Digital Renaming, Legitimacy & Investor Response**
🔍 **Research Objective**
This study examined how US digitalization and differences in digital legitimacy relate to firms’ digital renaming decisions, and whether renaming is associated with changes in institutional, US, and domestic investors’ investment.
🛠️ **Statistical Analysis in Stata**
📈 **1. Digital Trends & Descriptive Statistics**
Standardized search-intensity trends from 2012–2018 showed changing patterns in China and the US. The correlation analysis (N = 6,338) indicated a positive association between US digitalization and digital renaming (r = 0.13, p < 0.01). Growing stage was also positively associated with renaming (r = 0.10, p < 0.01).
📉 **2. Random-Effects Logistic Regression**
During the growth stage, US digitalization was positively associated with digital renaming (β = 1.970, p < 0.001). After including digital legitimacy difference, the association remained significant (β = 2.455, p < 0.001), while legitimacy difference showed a negative association (β = −1.082, p < 0.05).
⚠️ The nascent-stage model could not be estimated under the original specification because too few firms renamed digitally.
🔬 3. Robustness & Sensitivity Analysis
When examining only firms’ first digital renaming, the US digitalization coefficients were no longer statistically significant. Alternative stage definitions produced significant growth-stage associations, but the nascent-stage results.
💼 **4. Investment Impact: Fixed-Effects Regression**
Firm fixed-effects models with year effects and firm-clustered standard errors examined institutional, US, and domestic investment.
• Institutional investment: the renaming × post-renaming coefficient was negative but insignificant in both growth and nascent stages.
• US investment: the interaction was negative and insignificant in both stages.
• Domestic investment: the interaction was also negative and insignificant in both stages.
🎯 Key Takeaway
Stata-based results suggest a strong association between US digitalization and digital renaming during the growth stage
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