Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Seeking help with dummy variable in panel data

    Hello everyone. I am not proficient in Stata. I am seeking for some help.


    Below is the panel dataset. If the firm is targeted in the event, it is in TARGET_NAME with TARGET_DUMMY=1. The same directors(DIR_ID) may work simultaneously( SIMULTAN_DUMMY=1) in other firms besides TARGET firms in the same year. The Institutional owners own stocks for companies(STOCK_NAME) with their IDs in the (INS_OWNER_ID) column. I want to create a dummy variable (Common_ownership) ( not shown in the dataset). If the same institutional owner( same INS_OWNER_ID) owns stocks for both target and simultaneous firms in the same year, dummy=1for simultaneous firms only, 0 otherwise ((Common_ownership) is equal to 0 always for target firms.

    For example, in 2020, the same INS_OWNER_ID owned stock for target and simultaneous firms with the same DIR_ID. So the (Common_ownership) dummy should be 1 for RALPH LAUREN CORP and SEANLAND( both simultaneous firms), but 0 for JOHNSON & JOHNSON as it is the target firm.

    However, in 2019, the target(APPLEBY) and simultaneous firms( OGILVY and SEANLAND under the same DIR_ID had different INS_OWNER_IDs. So, the (Common_ownership) should be 0 for both target (APPLEBY), and simultaneous firms( OGILVY and SEANLAND) as INS_OWNER_ID is different.

    In 2018, the target (DENNIS) and simultaneous firms(PSEUDO and DEUTCH) under the same DIR_ID. Here, the target ( DENNIS) and simultaneous firm(PSEUDO) have the same Institutional owners( same INS_OWNER_ID). So, the (Common_ownership) dummy should be 1 for (PSEUDO) only ( 0 for target firms( DENNIS). For the other simultaneous firm in 2018(DEUTCH), the (INS_OWNER_ID) is not the same as the target firm( TARGET_NAME is ( DENNIS). So, (Common_ownership) dummy should be 1 for only (PSEUDO) and 0 for target company(DENNIS) and simultaneous firm DEUTCH( as it does not have the same institutional owner as the target firm even though it is a simultaneous firm).

    The IDs that are readily available are DIR_ID, COMPANY_ID and INS_OWNER_ID.


    Thanks in advance for your kind help. I have attached the spreadsheet too.



    STOCK_NAME SIMULTAN_DUMMY TARGET_DUMMY TARGET_NAME DIR_ID COMPANY_NAME COMPANY_ID YEAR INS_OWNER_ID
    JOHNSON & JOHNSON 0 1 JOHNSON & JOHNSON 115793 JOHNSON & JOHNSON 15555 2020 110
    RALPH LAUREN CORP 1 0 JOHNSON & JOHNSON 115793 RALPH LAUREN CORP 178556 2020 110
    SEANLAND 1 0 JOHNSON & JOHNSON 115793 SEANLAND 1723 2020 110
    APPLEBY 0 1 APPLEBY 1533 APPLEBY 2555 2019 115
    OGILVY 1 0 APPLEBY 1533 OGILVY 50004 2019 116
    SEANLAND 1 0 APPLEBY 1533 SEANLAND 700032 2019 111
    DENNIS 0 1 DENNIS 20155 DENNIS 84356 2018 250
    PSEUDO 1 0 DENNIS 20155 PSEUDO 20005 2018 250
    DEUTCH 1 0 DENNIS 20155 DEUTCH 40039 2018 300
    Attached Files
    Last edited by Rash Asger; 19 Feb 2024, 08:31.
Working...
X