Hi!
I am currently examining the influence of CEO compensation on firm performance, utilizing quarterly data on CEO remuneration for companies that were part of the S&P 500 from 2009 to 2015.
I am integrating various control variables, whereas some of them are usually averaged per tenure year of the CEO. For example, I compute the cumulative value of the firm's acquisitions under a specific CEO by dividing the total acquisition sum by the years the CEO served. For instance, if a CEO was in office from January 1, 2010, to January 1, 2014, I aggregate the values of deals within this timeframe and divide by 4.
While this methodology appears straightforward for CEO tenures within the sample period, I'm grappling with the challenge of CEO tenures that extend beyond the specified timeframe. Take the scenario where a CEO started their tenure on May 10, 2016, and remains in office today, thus surpassing my sample period. In such instances, I'm contemplating whether to establish a "hypothetical" tenure, according to the end of my sample period, i.e., December 31, 2015 or use the date as of today for calculting the tenure. I don't know why but somehow the latter seems just wrong to me.
I know this is not exactly Stata programming related (not yet) but I would greatly appreciate any insights or recommendations on this specific aspect.
I am currently examining the influence of CEO compensation on firm performance, utilizing quarterly data on CEO remuneration for companies that were part of the S&P 500 from 2009 to 2015.
I am integrating various control variables, whereas some of them are usually averaged per tenure year of the CEO. For example, I compute the cumulative value of the firm's acquisitions under a specific CEO by dividing the total acquisition sum by the years the CEO served. For instance, if a CEO was in office from January 1, 2010, to January 1, 2014, I aggregate the values of deals within this timeframe and divide by 4.
While this methodology appears straightforward for CEO tenures within the sample period, I'm grappling with the challenge of CEO tenures that extend beyond the specified timeframe. Take the scenario where a CEO started their tenure on May 10, 2016, and remains in office today, thus surpassing my sample period. In such instances, I'm contemplating whether to establish a "hypothetical" tenure, according to the end of my sample period, i.e., December 31, 2015 or use the date as of today for calculting the tenure. I don't know why but somehow the latter seems just wrong to me.
I know this is not exactly Stata programming related (not yet) but I would greatly appreciate any insights or recommendations on this specific aspect.
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