Hello all,
Nice to meet you. It is my first time in this forum and forgive me in advance for any errors related to writing my post.
Currently I am writing my bachelor thesis about the impact of CEO / CFO Turnover on earnings management.
I am really new to this topic, to STATA and statistics in general. So really need some help.
To detect earnings management (manipulation of earnings) one could use the Jones model or the mod. Jones model.
I am using the mod. Jones model (see attachment)
I created all the needed varibales but I have no clue clue on how to create a regression in STATA.
tic= company name fyear =fiscal year (2012-2022)
sort tic_num fyear
by tic_num: gen tac = (ib - oancf)/L.at
by tic_num: gen inverse_asset= 1/L.at
by tic_num: gen lagrevrec= (rev - L.rev)/L.at - (rect - L.rect)/L.at
by tic_num: gen ppeglag=ppe/L.at
tac = Total Accruals
inverse_asset = 1/the book value of total assets of firm
lagrevrec= (chang revenue and change accountsrecivable)/ lagged total assets
ppeglag = Gross property, plant and equitment
The next step no is to build a regession with y variable = tac and x varibles: inverse_asset, lagrevrec, ppeglag
(assumption: year is stationary)
I want to estimate the parameters.
I don't even know where to begin and what to what I have to pay attention to.
Thank you so so much in advance!!!
Johanna
Nice to meet you. It is my first time in this forum and forgive me in advance for any errors related to writing my post.
Currently I am writing my bachelor thesis about the impact of CEO / CFO Turnover on earnings management.
I am really new to this topic, to STATA and statistics in general. So really need some help.
To detect earnings management (manipulation of earnings) one could use the Jones model or the mod. Jones model.
I am using the mod. Jones model (see attachment)
I created all the needed varibales but I have no clue clue on how to create a regression in STATA.
tic= company name fyear =fiscal year (2012-2022)
sort tic_num fyear
by tic_num: gen tac = (ib - oancf)/L.at
by tic_num: gen inverse_asset= 1/L.at
by tic_num: gen lagrevrec= (rev - L.rev)/L.at - (rect - L.rect)/L.at
by tic_num: gen ppeglag=ppe/L.at
tac = Total Accruals
inverse_asset = 1/the book value of total assets of firm
lagrevrec= (chang revenue and change accountsrecivable)/ lagged total assets
ppeglag = Gross property, plant and equitment
The next step no is to build a regession with y variable = tac and x varibles: inverse_asset, lagrevrec, ppeglag
(assumption: year is stationary)
I want to estimate the parameters.
I don't even know where to begin and what to what I have to pay attention to.
Thank you so so much in advance!!!
Johanna
