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  • I would like some help with coding and generating faultline variable in Stata

    Hello everyone,

    I'm a student and I'm currently having some issues with coding and generating the variables for my research. My research is in the area of Strategic Management and is about the moderating effect of CEO-TMT characteristics on the relationship between TMT faultlines and R&D spending.

    I have collected the following data on TMT members:

    - exective age
    - executive gender
    - executive tenure
    - executive tenure on the top management team
    - type of degree of executive

    This is the first time I am using Stata to generate variables, so I don't know much about it.

    I want to see if there exists any faultlines within the TMT, based on 4 characteristics: age, gender, tenure and education.

    I would like to generate a faultlines variable using the following formula:

    Click image for larger version

Name:	faultlines formula.png
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ID:	1498813



    n = number of group members (In my dataset this is "TMT size")

    p = number of characteristics (The characteristics that I have in my dataset are: age, gender, tenure and education)

    S = total subgroups = 2* (number of TMT members) -1 - 1


    Xijk = the value of the jth characteristic of the ith member of subgroup k.

    X-j indicates the overall group mean of characteristic j.

    x- jk indicates the mean of characteristic j in subgroup k.

    g= all possible splits (=S?)

    ng k denotes the number of members of the kth subgroup (k= 1,2) under split g.

    Fau= Fau is calculated as the maximum value of Faug over all possible splits g = 1,2,…,S.


    This is a preview of my data using dataex:

    input int year byte(age gender tenure typeofdegree)
    2006 68 1 . 2
    2006 59 1 31 2
    2006 58 1 36 2
    2006 35 1 12 .
    2007 69 1 . 2
    2007 60 1 . 2
    2007 59 1 . 2
    2007 36 1 . .
    2008 70 1 . 2
    2008 61 1 . 2
    2008 60 1 . 2
    2008 37 1 . .
    2009 71 1 . 2
    2009 62 1 . 2
    2009 61 1 . 2
    2009 38 1 . .
    2006 50 1 . 4
    2006 51 1 . .
    2006 51 1 . 3
    2006 . 1 36 4
    2006 54 1 . 2
    2006 53 1 . 4
    2006 51 1 26 2
    2006 42 0 16 5
    2007 51 1 . 4
    2007 51 1 . 3
    2007 . 1 37 4
    2007 44 1 20 4
    2007 53 1 . 4
    2007 49 1 . 5
    2007 43 0 17 5
    2007 53 1 29 4
    2008 52 1 . 4
    2008 52 1 . 3
    2008 . 1 38 4
    2008 45 1 21 4
    2008 54 1 . 4
    2008 49 1 . 5
    2008 44 0 18 5
    2008 54 1 30 4
    2009 53 1 . 4
    2009 53 1 . 3
    2009 . 1 39 4
    2009 49 1 24 5
    2009 46 1 22 4
    2009 55 1 . 4
    2009 50 1 . 5
    2009 45 0 19 5
    2006 48 1 . .
    2006 59 1 . .
    2006 . 1 . 5
    2006 55 1 18 .
    2007 49 1 . .
    2007 60 1 . .
    2007 . 1 . 5
    2007 56 1 19 .
    2008 50 1 . .
    2008 61 1 . .
    2008 . 1 . 4
    2008 57 1 20 .
    2009 51 1 . .
    2009 62 1 . .
    2009 . 1 . 4
    2009 58 1 21 .
    2006 68 1 . 3
    2006 51 1 . 3
    2006 61 1 37 4
    2006 43 0 6 4
    2006 59 1 . 4
    2007 69 1 . 3
    2007 44 1 . 3
    2007 62 1 . 4
    2007 44 0 . 4
    2007 60 1 . 4
    2007 38 1 9 4
    2008 70 1 . 3
    2008 45 1 . 3
    2008 63 1 . 4
    2008 45 0 . 4
    2008 61 1 . 4
    2008 45 1 . 4
    2008 39 1 . 4
    2009 71 1 . 3
    2009 46 1 . 3
    2009 40 1 . 4
    2009 46 0 . 4
    2009 62 1 . 4
    2009 46 1 . 4
    2006 57 1 . 4
    2006 49 1 . 4
    2006 50 1 . 4
    2006 41 0 20 4
    2006 51 1 30 2
    2007 54 1 . 2
    2007 51 1 . 4
    2007 42 0 21 4
    2007 52 1 31 2
    2008 55 1 . 2
    2008 52 1 . 4
    2008 43 0 22 4
    end


    I would really appreciate any helpful tips on how to deal with this. Thank you in advance.


    Dion Sinack
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