Hi everyone,
I'm working on a study to investigate the impact of firm performance on probability of takeover. I will be using a logit model, with target = 1 or 0 as the dependent variable, and other firm characteristics to obtain results. However, currently my ratio of targets to non-targets is 96 : 1315, which is quite skewed.
Hence, I'm looking to reduce my non-targets sample to a smaller number before running the regression, probably by matching 1-2 non-targets to every target. I plan to match the targets based on the year and reit_id but i'm not quite sure how to do this. Below is my code for a small portion of my data. The column target is the dependent variable, where i hope to reduce the number target = 0.
Thanks for your help in advance.
I'm working on a study to investigate the impact of firm performance on probability of takeover. I will be using a logit model, with target = 1 or 0 as the dependent variable, and other firm characteristics to obtain results. However, currently my ratio of targets to non-targets is 96 : 1315, which is quite skewed.
Hence, I'm looking to reduce my non-targets sample to a smaller number before running the regression, probably by matching 1-2 non-targets to every target. I plan to match the targets based on the year and reit_id but i'm not quite sure how to do this. Below is my code for a small portion of my data. The column target is the dependent variable, where i hope to reduce the number target = 0.
Thanks for your help in advance.
Code:
entityname entityid target year reit_id roa spalpha ebitdamargin market_ta Campus Crest Communities, Inc. 4258761 1 2014 Specialty .579 -0.51 37.455 40.21625 Monogram Residential Trust, Inc. 4190766 1 2016 Multifamily .179 0.07 47.322 56.40852 Rayonier Inc. 4062541 0 2014 Specialty 1.811 -0.72 34.616 144.3895 CyrusOne Inc. 4332673 0 2014 Specialty 1.657 0.29 46.479 67.78162 American Residential Properties, Inc. 4383076 1 2014 Specialty -.778 0.07 32.278 41.56983 Quality Care Properties, Inc. 4745972 1 2017 Health Care 2.141 -0.81 90.71 29.4966 New Senior Investment Group Inc. 4544851 0 2016 Health Care .208 -0.09 41.152 28.49409 Gladstone Land Corporation 4264067 0 2014 Specialty 1.08 -0.92 50.964 54.68895 Independence Realty Trust, Inc. 4235858 0 2016 Multifamily -.246 0.24 19.267 47.55272 Front Yard Residential Corporation 4345051 0 2015 Specialty .982 -0.51 19.431 28.1446 Bluerock Residential Growth REIT, Inc. 4214866 0 2017 Multifamily -1.42 -0.72 13.368 14.52915 New Senior Investment Group Inc. 4544851 0 2017 Health Care 1.07 -0.74 41.344 24.76231 Gladstone Land Corporation 4264067 0 2015 Specialty 1.552 -0.40 64.09 37.79842 Silver Bay Realty Trust Corp. 4335231 1 2016 Specialty .954 0.07 44.124 49.76474 CatchMark Timber Trust, Inc. 4108902 0 2015 Specialty -.518 -0.04 32.389 73.57886 Gladstone Commercial Corporation 4088076 0 2014 Diversified 2.586 -0.15 80.214 44.81316 Trade Street Residential, Inc. 4094472 1 2014 Multifamily .444 0.46 40.342 49.62671 Gladstone Land Corporation 4264067 0 2016 Specialty 1.624 0.46 71.098 33.73792 Associated Estates Realty Corporation 103102 1 2014 Multifamily 1.62 0.61 51.628 91.29086 NexPoint Residential Trust, Inc. 4561930 0 2016 Multifamily 1.362 0.97 43.274 45.40438 NexPoint Residential Trust, Inc. 4561930 0 2017 Multifamily .795 0.45 43.014 55.72662 UDR, Inc. 103025 0 2014 Multifamily 1.101 0.50 59.705 115.1405 CatchMark Timber Trust, Inc. 4108902 0 2016 Specialty -.383 -0.09 30.576 61.54402 Gladstone Commercial Corporation 4088076 0 2015 Diversified 2.622 -0.29 82.294 41.37527 American Campus Communities, Inc. 4092925 0 2014 Specialty 1.721 0.41 48.367 76.2162 Mid-America Apartment Communities, Inc. 103123 0 2014 Multifamily 2.192 0.31 54.732 82.39773 Lexington Realty Trust 103128 0 2014 Diversified 2.94 0.06 81.272 68.14964 NorthStar Realty Europe Corp. 4608576 0 2016 Office -.167 0.00 41.071 37.73274 Camden Property Trust 103094 0 2014 Multifamily 2.653 0.42 56.397 105.8357 Apartment Investment and Management Company 103180 0 2014 Multifamily 2.712 0.60 56.818 89.20546 Gladstone Land Corporation 4264067 0 2017 Specialty 1.822 0.48 73.489 40.06698 Global Net Lease, Inc. 4307540 0 2016 Diversified 1.613 -0.15 76.801 53.82782 Global Net Lease, Inc. 4307540 0 2017 Diversified 1.844 -0.53 78.085 45.57275 American Homes 4 Rent 4392539 0 2015 Specialty .424 -0.11 43.443 51.29628 Pennsylvania Real Estate Investment Trust 102991 0 2014 Regional Mall 1.859 0.21 50.725 63.55355 One Liberty Properties, Inc. 102988 0 2014 Diversified 3.427 0.21 73.748 63.40358 Home Properties, Inc. 103183 1 2014 Multifamily 2.995 0.31 59.654 84.33441 Apartment Investment and Management Company 103180 0 2012 Multifamily 1.922 0.23 55.875 61.53297 New Senior Investment Group Inc. 4544851 0 2015 Health Care -.109 -0.92 40.188 27.92127 MGM Growth Properties LLC 4674180 0 2017 Specialty 2.33 0.31 82.439 19.96539 Preferred Apartment Communities, Inc. 4263486 0 2012 Multifamily 1.318 0.52 46.964 33.54093 CatchMark Timber Trust, Inc. 4108902 0 2017 Specialty -.21 0.18 29.093 77.03358 Rayonier Inc. 4062541 0 2015 Specialty 2.179 -0.38 36.139 117.6844 UDR, Inc. 103025 0 2012 Multifamily .682 -0.20 59.412 86.96828 Wheeler Real Estate Investment Trust, Inc. 4305469 0 2014 Shopping Center -1.892 -0.11 24.25 14.47827 Apartment Investment and Management Company 103180 0 2010 Multifamily .972 1.07 48.615 41.19895 Preferred Apartment Communities, Inc. 4263486 0 2017 Multifamily 1.309 0.44 58.694 24.01128 Lexington Realty Trust 103128 0 2015 Diversified 2.936 -0.55 80.284 49.2753 Rouse Properties, Inc. 4298147 1 2015 Regional Mall 1.486 -0.33 56.213 33.42612 UDR, Inc. 103025 0 2013 Multifamily .954 -0.47 59.396 86.26359 Colonial Properties Trust 103076 1 2012 Multifamily 1.977 -0.03 55.763 57.36412 QTS Realty Trust, Inc. 4405219 0 2014 Specialty 2.425 0.56 39.725 89.93388 Apartment Investment and Management Company 103180 0 2013 Multifamily 2.503 -0.52 56.902 62.18889 Washington Real Estate Investment Trust 103036 0 2014 Diversified 1.94 0.19 55.25 88.9749 AvalonBay Communities, Inc. 103145 0 2014 Multifamily 2.958 0.58 65.601 133.6737 Healthcare Realty Trust Incorporated 103057 0 2014 Health Care 2.364 0.45 59.304 97.91383 Gladstone Commercial Corporation 4088076 0 2012 Diversified 3.239 -0.06 83.093 35.79676 CoreSite Realty Corporation 4258680 0 2014 Specialty 2.757 0.28 46.367 79.06402 American Campus Communities, Inc. 4092925 0 2015 Specialty 1.654 -0.01 48.54 77.32224 Gladstone Commercial Corporation 4088076 0 2016 Diversified 2.455 0.50 81.015 60.98448 Digital Realty Trust, Inc. 4094311 0 2014 Specialty 2.63 0.52 55.927 94.38674 NorthStar Realty Finance Corp. 4092549 1 2015 Diversified 2.471 -0.93 47.505 20.25767 Apartment Investment and Management Company 103180 0 2015 Multifamily 2.616 0.13 57.883 102.2728 InfraREIT, Inc. (REIT) 4573482 0 2016 Specialty 3.656 -0.05 87.303 41.77341 Cogdell Spencer Inc. 4104525 1 2010 Health Care 1.354 0.08 25.996 46.61516 Camden Property Trust 103094 0 2016 Multifamily 2.639 0.11 56.562 122.0128 American Homes 4 Rent 4392539 0 2014 Specialty -.017 -0.01 37.351 58.19209 Wheeler Real Estate Investment Trust, Inc. 4305469 0 2015 Shopping Center -1.149 -1.50 45.911 41.35297 Pennsylvania Real Estate Investment Trust 102991 0 2016 Regional Mall 2.274 -0.41 55.312 50.39394 CIM Commercial Trust Corporation 4543503 0 2017 Office 1.073 0.63 36.596 62.57856 Equity Residential 103054 0 2014 Multifamily 2.515 0.59 64.383 113.581 Investors Real Estate Trust 107231 0 2013 Multifamily 2.9 -0.50 58.091 52.25985 Washington Real Estate Investment Trust 103036 0 2013 Diversified 1.988 -0.80 57.383 78.9179 PS Business Parks, Inc. 102999 0 2014 Diversified 3.514 -0.03 62.349 96.14012 Medical Properties Trust, Inc. 4095909 0 2014 Health Care 2.814 0.17 64.68 63.9744 UDR, Inc. 103025 0 2016 Multifamily 1.466 -0.13 62.788 126.9551 UDR, Inc. 103025 0 2010 Multifamily .374 0.70 55.599 77.62515 American Assets Trust, Inc. 4270741 0 2014 Diversified 2.771 0.35 57.604 89.59715 Healthcare Trust of America, Inc. 4132396 0 2014 Health Care 1.928 0.53 61.652 111.1654 Wheeler Real Estate Investment Trust, Inc. 4305469 0 2017 Shopping Center 1.265 -0.77 58.985 19.0675 Pennsylvania Real Estate Investment Trust 102991 0 2017 Regional Mall 1.8 -0.98 54.761 32.14258 One Liberty Properties, Inc. 102988 0 2015 Diversified 3.369 -0.15 72.37 54.07995 Farmland Partners Inc. 4426904 0 2015 Specialty 1.424 0.03 50.33 38.09379 Washington Real Estate Investment Trust 103036 0 2015 Diversified 1.83 -0.01 56.267 84.21301 One Liberty Properties, Inc. 102988 0 2012 Diversified 3.33 0.36 75.484 61.89199 CBL & Associates Properties, Inc. 103092 0 2014 Regional Mall 3.824 0.02 65.297 50.10408
Comment