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  • Absolute value of residual

    Hello Experts
    A typical measure for firms’ use of earnings management in the finance literature is based on the absolute value of the residual of OLS regression estimates. Could someone please guide me on how to get the "absolute" value of residual after doing regression and predicting residuals?


  • #2
    Code:
    reg y x
    predict resid, residuals
    gen resid_abs = abs(resid)

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    • #3
      Thank you so much

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