For my research, I need to know for every company (CIK) in my dataset whether this company is audited by the industry specialist or not.
I'm new to Stata and I want to create an industry specialist variable called "specialist" which equals 1 if the auditor (auditor_fkey) has a market share of 25% or bigger compared to other audit firms in the specific industry, and 0 otherwise.
I want to calculate this market share based on the total audit fees of the audit firm in the industry, and the industries are based on their SIC code.
So, for every company (CIK) I want to know whether the auditor of this company (auditor_fkey) is the industry specialist (specialist) or not.
Does anyone know how to do this? Thank you in advance.
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input double fyear str10 cik str4 sic double(auditor_fkey audit_fees) byte chg_auditor 2005 "0000000020" "3823" 6 244000 0 2006 "0000000020" "3823" 6 574000 0 2007 "0000000020" "3823" 6 669000 0 2008 "0000000020" "3823" 6 680000 0 2005 "0000001800" "3845" 3 11875000 0 2006 "0000001800" "3845" 3 13966000 0 2007 "0000001800" "3845" 3 15409000 0 2008 "0000001800" "3845" 3 16000000 0 2009 "0000001800" "3845" 3 14739000 0 2005 "0000002098" "3420" 2 183000 0 2006 "0000002098" "3420" 2 220000 0 2007 "0000002098" "3420" 2 231000 0 2008 "0000002098" "3420" 1687 150000 1 2009 "0000002098" "3420" 2 0 1 2005 "0000002178" "5172" 3 338100 0 2006 "0000002178" "5172" 3 425534 0 2007 "0000002178" "5172" 3 544747 0 2008 "0000002178" "5172" 3 634253 0 2009 "0000002178" "5172" 3 846528 0 2005 "0000002186" "3663" 7 150500 0 2006 "0000002186" "3663" 7 141000 0 2007 "0000002186" "3663" 7 181500 0 2008 "0000002186" "3663" 7 170000 0 2009 "0000002186" "3663" 7 183750 0 2005 "0000002488" "3674" 2 9300000 0 2006 "0000002488" "3674" 2 4500000 0 2007 "0000002488" "3674" 2 5100000 0 2008 "0000002488" "3674" 2 4400000 0 2009 "0000002488" "3674" 2 4000000 0 2005 "0000002809" "1040" 2 627104 0 2006 "0000002809" "1040" 2 1150200 0 2007 "0000002809" "1040" 2 1357620 0 2008 "0000002809" "1040" 2 1715190 0 2009 "0000002809" "1040" 2 1536260 0 2005 "0000003116" "2834" 7 332100 0 2006 "0000003116" "2834" 7 526500 0 2007 "0000003116" "2834" 7 550600 0 2008 "0000003116" "2834" 2 805000 1 2009 "0000003116" "2834" 2 624000 0 2005 "0000003197" "3564" 3 57742 0 2006 "0000003197" "3564" 358 180432 1 2007 "0000003197" "3564" 358 426652 0 2008 "0000003197" "3564" 7 385000 1 2009 "0000003197" "3564" 7 415218 0 2005 "0000003453" "4400" 3 1557150 0 2006 "0000003453" "4400" 3 1548750 0 2007 "0000003453" "4400" 3 1617180 0 2008 "0000003453" "4400" 3 1605000 0 2009 "0000003453" "4400" 3 1556000 0 2005 "0000003570" "1311" 1662 401360 0 2006 "0000003570" "1311" 1662 533664 0 2007 "0000003570" "1311" 2 795525 1 2008 "0000003570" "1311" 2 1490870 0 2009 "0000003570" "1311" 2 1693800 0 2005 "0000003673" "4911" 1 5005360 0 2006 "0000003673" "4911" 1 4270670 0 2007 "0000003673" "4911" 1 3619960 0 2008 "0000003673" "4911" 3 3184620 1 2009 "0000003673" "4911" 3 3571550 0 2005 "0000003982" "1381" 1662 325542 0 2006 "0000003982" "1381" 1687 629778 1 2007 "0000003982" "1381" 1687 1236000 0 2008 "0000003982" "1381" 1687 1038460 0 2009 "0000003982" "1381" 1687 863096 0 2005 "0000004187" "4953" 8 44500 0 2006 "0000004187" "4953" 1829 93975 1 2007 "0000004187" "4953" 1829 77500 0 2008 "0000004187" "4953" 1829 107500 0 2009 "0000004187" "4953" 10547 108950 1 2005 "0000004447" "1311" 2 7395000 0 2006 "0000004447" "1311" 2 8288000 0 2007 "0000004447" "1311" 2 9228000 0 2008 "0000004447" "1311" 2 9496000 0 2009 "0000004447" "1311" 2 9713000 0 2005 "0000004904" "4911" 3 12890000 0 2006 "0000004904" "4911" 3 12644000 0 2007 "0000004904" "4911" 3 11747000 0 2008 "0000004904" "4911" 3 11762000 0 2009 "0000004904" "4911" 3 11411000 0 2005 "0000005187" "2834" 1 10600000 0 2006 "0000005187" "2834" 1 10700000 0 2007 "0000005187" "2834" 1 11000000 0 2008 "0000005187" "2834" 1 12500000 0 2005 "0000005981" "2870" 7 474000 0 2006 "0000005981" "2870" 7 503000 0 2007 "0000005981" "2870" 7 621000 0 2008 "0000005981" "2870" 7 605000 0 2009 "0000005981" "2870" 7 506000 0 2005 "0000006176" "3460" 3 654520 0 2006 "0000006176" "3460" 3 616798 0 2007 "0000006176" "3460" 3 598458 0 2008 "0000006176" "3460" 3 692250 0 2009 "0000006176" "3460" 3 697329 0 2005 "0000006201" "4512" 2 2275000 0 2006 "0000006201" "4512" 2 2578000 0 2007 "0000006201" "4512" 2 2489000 0 2008 "0000006201" "4512" 2 2578000 0 2009 "0000006201" "4512" 2 2570000 0 2005 "0000006292" "7371" 3 507279 0 2006 "0000006292" "7371" 3 456037 0 end
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