I'm currently analysing abnormal returns using company financials.
In computing a needed leverage variable I encounter some trouble
Code:
* Example generated by -dataex-. For more info, type help dataex clear input float(date year) double(f_yr f_yr_end) float leverage double(dlc dltt tot_assets) 531 2004 2003 4 .4638955 1.293 27.411 61.876 543 2005 2004 4 .46489215 1.175 25.355 57.067 555 2006 2005 4 .4284869 1.167 21.29 52.41 567 2007 2006 4 .4560486 1.035 25.139 57.393 579 2008 2007 4 .3888294 .632 19.71 52.316 591 2009 2008 4 .4533853 .567 19.221 43.645 603 2010 2009 4 .15166536 .271 5.94 40.952 615 2011 2010 4 .23005947 .334 5.7 26.228 end format %tm date format %ty year
date = current month/year
year = current year
f_yr = current fiscal year
f_yr_end = current fiscal year ending month
dlc = short term debt
dltt = long term debt
tot_assets = total assets
The leverage values have currently been calculated as:
(dlc+dltt)/tot_assets
However, they need to be calculated using the values of dlc, dltt and tot_assets in the previous fiscal year (f-1):
Leveragek,t= (dlck,f-1+dlttk,f-1)/tot_assetsk,f-1
for firm k in year t
How can I accomplish this?
Thank you in advance!
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