I am having trouble in replicating a paper which involves the following procedures:
"1. each year, sort firms into quartiles (four portfolios) according to their MainVar, which we denote: very high, high, medium, and low. The portfolio formation year is denoted event year 0.
2. compute the average MainVar for each portfolio in each of the subsequent 20 years, holding the portfolio composition constant (but for firms that exit the sample).
3. repeat these two steps of sorting and averaging for every year in the sample period--generating sets of event-time averages, one for each calendar year in the sample."
Example of the data is shown below. Thank you in advance for any help you can provide.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input long gvkey float MainVar int fyear 1000 -.05931227 1975 1000 -.0446973 1976 1004 -.03979895 1976 1004 -.03485366 1977 1004 -.0398857 1978 1004 -.032126352 1979 1004 -.033116795 1980 1004 -.008839214 1981 1004 -.016435781 1982 1004 -.016051311 1983 1004 -.01591699 1984 1004 -.016392171 1985 1004 -.01386716 1986 1004 -.04086016 1987 1004 -.03886304 1988 1004 -.032641336 1989 1004 -.028031914 1990 1004 -.02731301 1991 1004 -.02894183 1992 1004 -.033087466 1993 1004 -.04258972 1994 1004 -.027932523 1995 1004 -.019193865 1996 1004 -.015728466 1997 1004 -.02274823 1998 1004 -.02632774 1999 1004 -.024203593 2000 1004 -.020064574 2001 1004 -.024589034 2002 1004 -.04445133 2003 1004 -.03749997 2004 1004 -.036466308 2005 1004 -.03313513 2006 1004 -.03753422 2007 1004 -.016174972 2008 1004 -.026035206 2009 1004 -.02514132 2010 1004 -.01839163 2011 1004 -.02391577 2012 1004 -.027015166 2013 1004 -.02264704 2014 1004 -.01491521 2015 1004 -.03123271 2016 1007 -.13332947 1981 1007 -.13764992 1982 1009 -.020148207 1990 1009 -.021322455 1991 1009 -.02343671 1992 1009 -.020914357 1993 1010 -.01667689 1975 1010 -.018094808 1976 1010 -.01788943 1977 1010 -.013921067 1978 1010 -.013467587 1979 1010 -.0101989 1980 1010 -.004100148 1981 1010 -.003745733 1982 1010 -.005040575 1983 1010 -.02240258 1984 1010 -.04920172 1985 1010 -.04853592 1986 1010 -.05111405 1987 1010 -.032642946 1988 1010 -.025421444 1989 1010 -.10748334 1990 1010 -.1068446 1991 1010 -.11349825 1992 1010 -.09598474 1993 1012 -.05157713 1981 1012 -.070317276 1982 1012 -.070496686 1983 1012 -.071034856 1984 1012 -.05647805 1985 1012 -.03422371 1986 1012 -.018793667 1987 1012 -.02133924 1988 1013 -.071882375 1981 1013 -.06237599 1982 1013 -.05837036 1983 1013 -.06488147 1984 1013 -.067318715 1985 1013 -.03853164 1986 1013 -.026800627 1987 1013 -.016855292 1988 1013 -.015205235 1989 1013 -.02089499 1990 1013 -.033264887 1991 1013 -.027485143 1992 1013 -.0312597 1993 1013 -.026402794 1994 1013 -.030541744 1995 1013 -.02542709 1996 1013 -.02722378 1997 1013 -.0274456 1998 1013 -.036690764 1999 1013 -.06832756 2000 1013 -.068572104 2001 1013 -.0772918 2002 1013 -.0953388 2003 1013 -.06854397 2004 end
0 Response to Questions on portfolio analysis
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