Dear Community,
I'm very new to using STATA and I'm currently doing a thesis were I'm analysing the performance of different M&A strategies. I am using a dataset of roughly 600 public companies who have done around 7000 total transactions over the past 2 decades. Based on certain characteristics (namely, frequency and deal size) I am grouping the 600 companies into 4 different strategies. As a later step, I'm also thinking of including dummy variables for industry relatedness (between bidder and target), Cross-border acquisition, macroeconomic environment (recession vs boom) etc.
My goal with the data is to investigate the relative performance of these strategies using monthly market returns. I want to see if any of the strategies/groups show a higher AAR, CAAR, CAR. My initial though is that I want to have a measurement period of announcement date + 1, 2 and 3 years using monthly data for stock returns. I will also be looking at accounting performance, quarterly ROE & ROA.
As I am very new to using STATA and statistics in general, I'm not quite sure if my method is a buy-and-hold abnormal returns (BHAR) or event study. Also, it would be highly appreciated if someone could point me in the right direction regarding online guides that is relevant to what I'm trying to do. Any comments or tips are very welcome!
Thanks!
I'm very new to using STATA and I'm currently doing a thesis were I'm analysing the performance of different M&A strategies. I am using a dataset of roughly 600 public companies who have done around 7000 total transactions over the past 2 decades. Based on certain characteristics (namely, frequency and deal size) I am grouping the 600 companies into 4 different strategies. As a later step, I'm also thinking of including dummy variables for industry relatedness (between bidder and target), Cross-border acquisition, macroeconomic environment (recession vs boom) etc.
My goal with the data is to investigate the relative performance of these strategies using monthly market returns. I want to see if any of the strategies/groups show a higher AAR, CAAR, CAR. My initial though is that I want to have a measurement period of announcement date + 1, 2 and 3 years using monthly data for stock returns. I will also be looking at accounting performance, quarterly ROE & ROA.
As I am very new to using STATA and statistics in general, I'm not quite sure if my method is a buy-and-hold abnormal returns (BHAR) or event study. Also, it would be highly appreciated if someone could point me in the right direction regarding online guides that is relevant to what I'm trying to do. Any comments or tips are very welcome!
Thanks!
