Hi,
For my masters Accountancy I am doing a replication of the Johnson, Khurana and Reynolds (2002) paper, Audit-Firm Tenure and the Quality of Financial Reports.
There are three groups within the sample: short- medium and long tenure groups. In this paper they match on industry and size by selecting the short tenure firms and match these with medium- and long tenure firms in the same fiscal year and SIC code, and that are closest in size. This is how they explain the way they matched the samples.
I have created three dummy variables (one for short- medium- and long tenure each) but I do not succeed in matching the three groups on industry and size.
Hopefully someone can help me out!
best, Joost
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