Dear Statalist, hope everyone's doing well.
Using PSM approach, i want to construct a match sample between firms that carry goodwill (GW) at the beginning of the year and report a goodwill impairment (GWI) with firms in the same industry-year (two-digit SIC industry) that carry goodwill (at the beginning of the year) but do not report a goodwill impairment and the closest market-to-book (MTB). The MTB ratio between impairers and matched non-impairers to a maximum of 0.25 to allow meaningful comparisons between ‘Suspect’ firms and Control firms.
my dependent variable is CRASH
goodwill impairment avoidance variable is GWI
goodwill ratio is GW
control variables are, let say SIZE and PROF
I use PSM in my other works but i not face the MTB ratio notion (as stated above) before in PSM approach. I mean i do not know how to accommodate the MTB (0.25 similarity condition) in the PSM approach during matched sample construction.
thanks for reading the full message. Have a good day.
Using PSM approach, i want to construct a match sample between firms that carry goodwill (GW) at the beginning of the year and report a goodwill impairment (GWI) with firms in the same industry-year (two-digit SIC industry) that carry goodwill (at the beginning of the year) but do not report a goodwill impairment and the closest market-to-book (MTB). The MTB ratio between impairers and matched non-impairers to a maximum of 0.25 to allow meaningful comparisons between ‘Suspect’ firms and Control firms.
my dependent variable is CRASH
goodwill impairment avoidance variable is GWI
goodwill ratio is GW
control variables are, let say SIZE and PROF
I use PSM in my other works but i not face the MTB ratio notion (as stated above) before in PSM approach. I mean i do not know how to accommodate the MTB (0.25 similarity condition) in the PSM approach during matched sample construction.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input double stkcd float year double CRASH float(GW GWI SIZE PROF MTB) long SIC 1 1990 0 . . 21.79457 0 0 . 2 1991 .170971 . . 20.1585 0 0 . 3 1991 0 . . 20.225386 .267552 0 78 3 1992 -3.87505 . . 20.741434 0 0 78 3 1993 -.477999 . . 21.37643 0 0 78 3 1994 -.53581 . . 21.63164 .348708 0 78 3 1995 -1.410487 . . 21.77301 .084141 0 78 3 1996 -.359771 . . 21.962976 -.094346 0 78 3 1997 -.82924 . . 22.070116 .039895 0 78 3 1998 -.599534 . . 21.90439 -.327599 0 78 3 1999 -.331646 . . 21.817194 -.233992 0 78 3 2000 -.282132 . . 21.637333 -.869136 .8251 78 3 2001 0 . . 20.91549 .050015 0 78 4 1991 3.24653 . . 18.713936 .146448 0 52 4 1992 .588337 . . 19.59143 0 0 52 4 1993 -.179296 . . 20.46436 0 0 52 4 1994 .048029 . . 20.60839 .103504 0 52 4 1995 -2.270361 . . 20.99533 .047177 0 52 4 1996 -.022349 . . 20.305433 -.305506 0 52 4 1997 .074325 . . 20.220943 .057257 0 52 4 1998 -1.695974 . . 19.7992 -.759304 0 52 4 1999 .332856 . . 19.625147 .082548 0 52 4 2000 -.633632 . . 20.0464 .304539 5.453 52 4 2001 .411813 . . 19.21823 .27231 8.333 52 4 2002 -.259074 . . 19.39 .181814 4.7752 52 4 2003 .111824 . . 19.287256 .177029 2.9584 52 4 2004 -1.258175 . . 19.18275 -.084911 2.669 52 4 2005 .384563 . . 18.864525 -.570855 2.2305 52 4 2006 -.203923 . . 19.13512 .09011 1.6853 52 4 2007 .053718 .0007405839 . 18.950264 -.328889 4.9252 52 4 2008 .090586 .0007494633 . 18.938347 -.398042 1.7815 52 4 2009 .090382 .0005456021 . 19.255814 .170921 0 52 4 2010 .556803 .0004096241 . 19.03164 .829049 5.4885 25 4 2011 -.067696 .00038440115 . 19.09519 .251042 3.4608 25 4 2012 -1.638247 .003151819 . 19.077753 .16796 3.5608 25 4 2013 .463156 .001495106 . 19.305077 .141097 4.0401 25 4 2014 -1.302927 .0010702384 . 19.63939 .413123 3.8652 25 4 2015 -.673026 .000908119 . 19.803654 .181489 0 25 4 2016 0 .001618313 . 19.22589 1.186791 0 25 4 2017 .898272 .0013466643 . 19.409643 .188728 0 25 4 2018 -.510376 .0010309403 . 19.6768 -21.825294 3.8332 25 4 2019 .019961 .6606959 . 21.12505 -1.616269 1.2694 25 4 2020 -1.470458 .42100585 . 21.17023 31.117054 2.1851 63 5 1992 0 . . 20.2352 0 0 78 5 1993 0 . . 20.35511 0 0 78 5 1994 .208066 . . 20.83099 .262961 0 78 5 1995 -1.115737 . . 21.100824 .119185 0 78 5 1996 -.588519 . . 21.114496 .146131 0 78 5 1997 -.398567 . . 21.46508 .269034 0 78 5 1998 .044074 . . 21.441135 .274764 0 78 5 1999 -.609162 . . 21.511013 .203327 0 78 5 2000 -.267785 . . 21.426693 -.025431 2.493 78 5 2001 -.843084 . . 21.377836 -.202983 1.9039 78 5 2002 -.521348 . . 21.322403 -.235689 1.775 78 5 2003 1.549695 . . 21.30033 .002529 1.0625 78 5 2004 -.844426 . . 21.31693 .006684 .8611 78 5 2005 .320107 . . 21.22032 -.762055 .707 78 5 2006 -.863868 . . 21.147417 .187537 1.4897 78 5 2007 1.101461 . . 21.09966 .868366 0 78 5 2008 -.181637 . . 21.05187 .128983 1.6325 78 5 2009 -1.84341 . . 21.000294 -.565623 4.1724 78 5 2010 -.328382 . . 20.9807 -.05689 2.594 78 5 2011 0 . . 20.954844 .435049 0 78 5 2016 -1.390582 .06055095 . 21.65039 3.111774 2.8314 67 5 2017 -1.738955 .03941138 . 21.79214 .697418 1.5049 67 5 2018 .312189 .036768444 . 21.861555 5.572626 .9088 67 5 2019 -.469969 .03060942 . 21.832436 5.793785 1.0788 67 5 2020 -.72657 .034178838 . 21.62683 -13.685903 1.085 67 7 2010 -.541812 -.0829409 . 19.621914 .233454 0 59 7 2011 .297002 -.07607668 . 19.7083 .093733 0 59 7 2012 -.14671 -.03491458 . 20.48714 .052053 4.2322 59 7 2013 -.360131 -.04334569 . 20.303974 .228712 4.8757 59 7 2014 -2.791299 .0542232 . 20.33896 -.434055 0 59 7 2015 0 .10906006 . 19.990055 .18384 0 59 7 2016 0 .1322187 . 20.05845 1.181235 0 59 8 1992 -.911223 . . 18.500113 .296944 0 62 8 1993 -.043669 . . 19.299793 0 0 62 8 1994 -1.757823 . . 19.36172 .153703 0 62 8 1995 -2.44698 . . 19.32681 .003272 0 62 8 1996 -.353403 . . 19.300373 -.338915 0 62 8 1997 -.13404 . . 19.71083 .05721 0 62 8 1998 -.691292 . . 19.60424 -.461392 0 62 8 1999 -.885289 . . 19.28003 .512753 0 62 8 2000 -.402148 . . 19.488243 .293148 12.7412 62 8 2001 2.33093 . . 18.4939 -2.130769 8.187 62 8 2002 -.723883 . . 18.07277 -.192261 8.9594 62 8 2003 -1.400142 . . 17.917412 .017942 8.4673 62 8 2004 -.901504 . . 18.324144 .920887 6.8139 62 8 2005 -.132015 . . 18.3224 -.087085 3.2991 62 8 2006 -.590598 . . 18.157211 -.045471 3.9972 62 8 2007 -.419035 . . 18.186064 .270357 11.5573 62 8 2008 -.392452 . . 18.183874 .131799 4.1253 62 8 2009 -.676926 . . 18.19011 .181249 11.3901 62 8 2010 -.41175 . . 18.17135 .503765 11.3128 49 8 2011 .765457 . . 18.162384 -.356379 6.6466 49 8 2012 -.509306 . . 20.23523 .107192 2.6535 59 8 2013 -.225233 . . 20.25586 .067658 4.3605 59 8 2014 -2.489877 . . 20.328783 .025296 0 59 8 2015 -1.007183 .13904017 . 22.00124 .443639 0 35 8 2016 1.017115 .0876907 . 22.826504 2.901817 3.1956 35 8 2017 -.073085 .07346554 . 23.09148 3.629681 2.3094 35 8 2018 .071978 .05503574 . 23.07143 1.11061 0 35 8 2019 .01827 .03944701 . 23.21188 1.03062 .8381 35 8 2020 -.190445 .02943961 . 23.27492 -1.979905 .5506 35 9 1991 0 . . 20.314234 .667092 0 78 9 1992 -.4905 . . 21.15901 0 0 78 9 1993 -1.067705 . . 21.90816 1.550456 0 78 9 1994 -2.442687 . . 22.38048 1.482277 0 78 9 1995 -3.320058 . . 22.54414 .350654 0 78 9 1996 -.537591 . . 22.42706 .10798 0 78 9 1997 -.342533 . . 22.453907 .027981 0 78 9 1998 -1.696756 . . 22.30513 -1.180942 0 78 9 1999 .366312 . . 22.311125 .117863 0 78 9 2000 -.819909 . . 22.26319 .138761 1.4636 78 9 2001 -1.93997 . . 22.121046 .1314 1.1588 78 9 2002 -.964969 . . 22.136795 .075276 1.1686 78 9 2003 -.103487 . . 22.17282 .083513 1.0148 78 9 2004 -.107541 . . 22.32666 .063361 .6617 78 9 2005 -.159031 . . 22.310076 .133403 .4531 78 9 2006 .254062 . . 22.430016 .185243 .7359 78 9 2007 .311389 .00022457003 . 22.487877 .395514 0 78 9 2008 -.949916 .0003360106 . 22.528894 .302999 0 78 9 2009 -.873625 .00034641445 . 22.73844 .451794 1.5964 78 9 2010 -1.150964 .0005835678 . 23.02831 .513375 1.8247 78 9 2011 .241331 .001144239 . 23.19015 .384986 1.0088 78 9 2012 -1.088828 .0009598677 . 23.30131 .26231 .7287 78 9 2013 -.405042 .0009934435 . 23.334204 .281032 .8708 78 9 2014 -2.552823 .001705014 . 23.412846 .285592 0 78 9 2015 -1.160088 .0014380087 263.29 23.61995 .428819 1.5786 78 9 2016 -.473324 .0016271545 . 23.79702 .140367 1.0298 78 9 2017 -.82308 .0016625525 . 24.02315 .087014 .5732 78 9 2018 -1.964989 .00124036 . 24.119444 .158952 .3103 78 9 2019 -2.998861 .0012139962 . 24.13143 .152651 .5285 78 9 2020 1.606346 .0011096667 . 24.18451 .232142 .6097 78 10 1995 0 . . 19.20156 .159802 0 50 10 1996 -.173717 . . 19.463467 .149384 0 50 10 1997 .001024 . . 19.64261 .188161 0 50 10 1998 -.790007 . . 19.707895 .45717 0 50 10 1999 -.433342 . . 19.69654 -1.362854 0 50 10 2000 -.548289 . . 19.67852 .459753 5.713 50 10 2001 .162547 . . 19.499886 .136213 5.0716 50 10 2002 -.37 . . 20.292397 .322746 1.7689 50 10 2003 .032035 . . 20.5803 .385928 .9057 50 10 2004 .046293 . . 20.57493 .117173 .7571 50 10 2005 .602975 . . 19.68326 -1.858216 1.173 50 10 2006 .754267 . . 19.31276 .299683 0 50 10 2007 -.013608 .00980899 . 19.471327 -.618962 0 50 10 2008 .253336 .01387821 . 19.124306 .545353 3.7535 50 10 2009 -.338165 . . 19.261623 .28722 7.5203 50 10 2010 0 . . 19.173046 .125681 0 33 10 2011 0 . . 19.288864 .214169 0 33 10 2012 1.684843 . . 19.29523 .100279 0 33 10 2013 0 . . 20.750677 .087262 0 33 10 2014 -.348282 . . 20.50538 -1.565531 0 33 10 2015 -1.075066 .15997085 . 22.364626 .349072 0 46 10 2016 -.247305 .11343497 . 22.30292 .558128 1.2991 46 10 2017 -1.890863 .1772964 . 21.85633 -16.72133 1.431 46 10 2018 -.102364 .15715417 . 21.90906 -10.228224 .8165 46 10 2019 .037987 .11986256 . 22.17994 2.860556 .6495 46 10 2020 -.602234 .05732224 . 21.98788 3.345384 .9051 46 11 1992 -.273674 . . 21.551426 0 0 78 11 1993 -.504381 . . 21.93149 0 0 78 11 1994 .16206 . . 22.058113 .891774 0 78 11 1995 -.859311 . . 22.10793 .755849 0 78 11 1996 -1.304794 . . 22.106724 .107222 0 78 11 1997 -.330562 . . 21.82837 -2.290799 0 78 11 1998 -.701163 . . 21.72798 -.007489 0 78 11 1999 -.005263 . . 21.58769 .229964 0 78 11 2000 -.409771 . . 21.70433 .240919 2.0245 78 11 2001 -.467157 . . 21.618795 .445507 1.7643 78 11 2002 -.181748 . . 21.68184 .120296 1.0664 78 11 2003 -.210088 . . 21.614126 .265364 0 78 11 2004 -1.044044 . . 21.55745 .325474 .8494 78 11 2005 -.614207 . . 21.306896 .33474 0 78 11 2006 0 . . 21.22035 -.183171 0 78 11 2007 -.254891 . . 21.35733 -.243136 3.3908 78 11 2008 -.482574 . . 21.470354 .094544 .9265 78 11 2009 -1.11905 . . 21.7651 1.259119 2.1066 78 12 1992 -.42113 . . 19.84616 0 0 28 12 1993 -.45134 . . 20.812426 0 0 28 12 1994 -.334183 . . 21.02143 .619806 0 28 12 1995 -.147959 . . 21.54071 .514967 0 28 12 1996 -1.403477 . . 21.77066 .502088 0 28 12 1997 -.118366 . . 21.88531 .20585 0 28 12 1998 -.969317 . . 21.91652 .016979 0 28 12 1999 -1.21979 . . 21.77604 -.093112 0 28 12 2000 -.699575 . . 21.76172 .100037 4.3619 28 12 2001 -.467022 . . 21.716133 .092262 2.3001 28 12 2002 .090926 . . 21.816975 .104696 1.5021 28 12 2003 -.907385 . . 21.98061 .105214 1.1952 28 12 2004 .193984 . . 22.27943 .128183 1.0136 28 12 2005 .821719 . . 22.432245 .100449 .6922 28 12 2006 -1.146369 . . 22.636097 .088549 1.3919 28 12 2007 -.355645 .00035963 . 22.857784 .109536 2.3551 28 12 2008 .022838 .0002929769 . 23.062767 .090239 .7874 28 12 2009 -.186545 .0011242732 . 23.11325 .113548 1.7128 28 12 2010 -.463596 .0009839584 . 23.24656 .180838 2.6575 28 12 2011 .016524 .0008029103 . 23.4499 .141811 .989 28 12 2012 -.179275 .0002120526 . 23.386026 .039264 .9845 28 12 2013 -.409186 .00020160308 . 23.43656 .203161 .9564 28 end format %ty year label values sic sic label def sic 25 "C27", modify label def sic 28 "C30", modify label def sic 33 "C35", modify label def sic 35 "C37", modify label def sic 46 "E48", modify label def sic 49 "F51", modify label def sic 50 "F52", modify label def sic 52 "G54", modify label def sic 59 "H61", modify label def sic 62 "I64", modify label def sic 63 "I65", modify label def sic 67 "N77", modify label def sic 78 "S90", modify
thanks for reading the full message. Have a good day.
