Cash Flow Volatility

[Sabrina Schmidt]

Hello,

I want ro compute Cash flow volatility with just a few details.

Cash volatility as the standard deviation of industry cash flow to assets is computed as follows:
1. For each firm-year compute the standard deviation of cash flow to assets for the previous 10 years (at least three observations must be available)
2. Average the firm cash flow standard deviations each year across each four-digit SIC code

Hope you can help me!
My codes so far:

bysort gvkey year :generate uncf= (oibdp - txt - txditc - xint - dvp - dvc)/at
label var uncf "Undistributed Cash Flow"

xtset gvkey year
ssc install tsegen
tsegen sd_firm= rowsd(L(1/10).uncf, 3)
label var sd_firm "Standard Deviation of Cash Flow"

bysort SIC year: egen mean_SD= mean(sd_firm)
label var mean_SD "Industry Cash Flow Volatility"

Thankful for any advice.

[Attaullah Shah]

Your code already seems to be doing what you have asked for. So the questions is, what is the question? Are you getting any error