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  • Matching 3 groups within a sample on industry and size

    Hi,
    For my masters Accountancy I am doing a replication of the Johnson, Khurana and Reynolds (2002) paper, Audit-Firm Tenure and the Quality of Financial Reports.
    There are three groups within the sample: short- medium and long tenure groups. In this paper they match on industry and size by selecting the short tenure firms and match these with medium- and long tenure firms in the same fiscal year and SIC code, and that are closest in size. This is how they explain the way they matched the samples.

    I have created three dummy variables (one for short- medium- and long tenure each) but I do not succeed in matching the three groups on industry and size.

    Hopefully someone can help me out!

    best, Joost

  • #2
    You'll increase your chances of a useful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output (not pictures) and sample data using dataex.

    While there are many ways to do this, it may be easiest to do it manually.

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