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  • exclude the data

    Hello,
    How can I exclude firms for which I can't compute the lagged ratios?
    i mean ratios (cash flow to capital ratio) CFit-1 / Kit-2 .
    i dont know how can i convert that (can't compute) into stata.

  • #2
    this is a backfilling bias

    Comment


    • #3
      I don't follow #1 or #2. But if a result variable is missing in certain observations, those observations will generally be ignored by other commands.

      Comment


      • #4
        There is a missing value when I run the codes. But this is right
        i can't compute the ratios if the denominator is equal to zero, how can I drop the ratios?

        Comment


        • #5
          See #3 again. You should only drop observations with missing values on one variable if you are certain that you won't need those observations again.

          Otherwise

          Code:
          drop if missing(foo)
          will drop observations with missing values on foo, which will result if foo is a ratio and the numerator or denominator is missing or the denominator is zero.

          Comment


          • #6
            Ah, ok thank you

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