Regression on two explicative variables

#1
Hello,

I am currently doing a thesis which aims to explain returns of stocks in function of the ownerships of some stakeholders.

In the Excel attached, I would like to explain the returns in the last column with the two explicative variables ( Venture Capital % Ownership and Hedge Funds % Ownerships).
The aim is to find results stated such as this : When the % of venture capital in the company is high, we find that stocks returns are high.
This is the kind of correlation I would like to find but I do not know how to realize these regressions and interpret it as I am not an expert in statistics.

Do you know how I should do this please? I am also looking for a practical book/paper/guide, to practically do this kind of regression and interpret the results.

Thank you in advance for your response !

Gautier
 
#3
Yes indeed ! This is my "regressors"

I am currently trying to do the regression in the software R. But I encounter some difficulties and I am not sure if my code is correct! Can you please check that if you have knowledge in R ?

By the way, R sends me the error : "Error in fund - rf : non-numeric argument to binary operator". So I am blocked for the moment ..

Here is my code (I use Fama french names because I used it to make a regression before, and a friend told me it is the same except that you have to put your data for each company in lines, which I did, I sent you a screenshot of my Excel that I transfered in CSV file, to show you how my table looks like).

Fama-French Regression example in R

Load CSV file into R

ff_data <- read.table("Book10.csv",header=TRUE,sep=",")

Extract Fama-French Factors and Fund Returns

VentureCapital <- ff_data[,2]/100 HedgeFund <- ff_data[,3]/100

for (i in 4) { fund <- ff_data[,i]/100 fund.xcess <- fund - rf ffregression <- lm(fund.xcess ~ VentureCapital + HedgeFund) print(summary(ffregression)) }



Thank a lot for your answer