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  • How to caclulate "scaled by the square root" with stata

    Hi everyone.
    Would you please someone help me with how to use stata commend to generate a variable ATF= "Audit and audit-related fees scaled by the square root of total assets"?
    Many thanks!


  • #2
    The answer will depend on your data and what exactly this means.

    Is total assets already a variable?

    Is total assets to be calculated for the entire dataset or for subsets, e.g. years, sectors, companies, whatever?

    The function sqrt() is likely to be useful whichever way the answer runs.

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