As pointed out in the previous article, some limitations are associated with the estudy command. The command estudy does not capture the effect of two events on the same stock. Such as, if Apple announced the stock split twice on two different dates, then it is impossible to measure the influence of these two events […]
Event Study using the Eventstudy2 command in Stata Read More »
Preserve and restore commands in STATA offers invaluable help, especially working with large data sets. Suppose you are working on a data set and for some purposes, you have altered the data set but now you want to retrieve the original data set and run operations on it. you can do that by using simple
In the previous article, we studied the event study basics. It was discussed that finance and economics; event studies are frequently used to examine the influences of corporate events on the stock prices of affected companies, and it implements in five steps that include, identifying the event of interest, deciding the estimation window, deciding the
An event study investigates how an event affects a security’s value, such as stock price, trading volume, or return volatility. The response of security to any event can be predicted with the help of event studies. The fundamental idea underlying event studies is that a company’s stock price reflects all known information, including public and private
To generate lag values of a variable in Stata, you can use the “l.” prefix followed by the number of lags you want to create. Here’s an example of how to generate one lag of a variable named “variable” in the below example: Download Example File Step-1: First need to declare your data as time
