Ownership change over time

[gani davlatyov]

Hi everyone,

I am trying to examine the ownership changes of facilities over time. I am specifically interested in ownership changes from a For-profit Corporation to a For-profit Limited Liability Company. For example, consider organizations 10 and 14. Is there a way to identify those organizations where For-profit Corporations would be assigned '0', whereas if they changed ownership to a Limited Liability Company, they would be assigned '1' after the conversion? I want to know 1) how many facilities changed ownership during 2017-2023, and 2) conduct a pre-post analysis of these facilities (difference-in-difference).

* Example generated by -dataex-. For more info, type help dataex
clear
input float(num_id year) str38 ownership float FPCorp2FPLL
 1 2017 "For profit - Corporation"                .
 1 2018 "For profit - Corporation"               .
 1 2019 "For profit - Corporation"               .
 1 2020 "For profit - Corporation"               .
 1 2021 "For profit - Corporation"               .
 1 2022 "For profit - Corporation"               .
 1 2023 "For profit - Corporation"               .
 2 2017 "For profit - Corporation"               .
 2 2018 "For profit - Corporation"                     .
 2 2019 "For profit - Corporation"               .
 2 2020 "For profit - Corporation"               .
 2 2021 "For profit - Corporation"               .
 2 2022 "For profit - Corporation"               .
 2 2023 "For profit - Corporation"               .
 3 2017 "Government - County"                    .
 3 2018 "Government - County"                    .
 3 2019 "Government - County"                    .
 3 2020 "Government - County"                    .
 3 2021 "Government - County"                    .
 3 2022 "Government - County"                    .
 3 2023 "Government - County"                    .
 4 2017 "For profit - Corporation"               .
 4 2018 "For profit - Individual"                .
 4 2019 "For profit - Individual"                .
 4 2020 "For profit - Individual"                .
 4 2021 "For profit - Individual"                .
 4 2022 "For profit - Individual"                .
 4 2023 "For profit - Individual"                .
 5 2017 "For profit - Individual"               .
 5 2018 "For profit - Individual"                .
 5 2019 "For profit - Individual"                .
 5 2020 "For profit - Individual"                .
 5 2021 "For profit - Individual"                .
 5 2022 "For profit - Individual"                .
 5 2023 "For profit - Individual"                .
 6 2017 "For profit - Corporation"               .
 6 2018 "For profit - Corporation"               .
 6 2019 "For profit - Corporation"               .
 6 2020 "For profit - Corporation"               .
 6 2021 "For profit - Corporation"               .
 6 2022 "For profit - Corporation"               .
 6 2023 "For profit - Corporation"               .
 7 2017 "For profit - Corporation"               .
 7 2018 "For profit - Corporation"               .
 7 2019 "For profit - Corporation"               .
 7 2020 "For profit - Corporation"               .
 7 2021 "For profit - Corporation"               .
 7 2022 "For profit - Corporation"               .
 7 2023 "For profit - Corporation"               .
 8 2017 "For profit - Corporation"               .
 8 2018 "For profit - Corporation"               .
 8 2019 "For profit - Corporation"               .
 8 2020 "For profit - Corporation"               .
 8 2021 "For profit - Corporation"               .
 8 2022 "For profit - Corporation"               .
 8 2023 "For profit - Corporation"               .
 9 2017 "For profit - Corporation"               .
 9 2018 "For profit - Corporation"               .
 9 2019 "For profit - Corporation"               .
 9 2020 "For profit - Corporation"               .
 9 2021 "For profit - Corporation"               .
 9 2022 "For profit - Corporation"               .
 9 2023 "For profit - Corporation"               .
10 2017 "For profit - Corporation"               .
10 2018 "For profit - Corporation"               .
10 2019 "For profit - Corporation"               .
10 2020 "For profit - Corporation"               .
10 2021 "For profit - Limited Liability company" .
10 2022 "For profit - Limited Liability company" .
10 2023 "For profit - Limited Liability company" .
11 2017 "For profit - Corporation"               .
11 2018 "For profit - Corporation"               .
11 2019 "For profit - Corporation"               .
11 2020 "For profit - Corporation"               .
11 2021 "For profit - Corporation"               .
11 2022 "For profit - Corporation"               .
11 2023 "For profit - Corporation"               .
12 2017 "For profit - Corporation"               .
12 2018 "For profit - Corporation"               .
12 2019 "For profit - Corporation"               .
12 2020 "For profit - Corporation"               .
12 2021 "For profit - Corporation"               .
12 2022 "For profit - Corporation"               .
12 2023 "For profit - Corporation"               .
13 2017 "For profit - Corporation"               .
13 2018 "For profit - Corporation"               .
13 2019 "For profit - Corporation"               .
13 2020 "For profit - Corporation"               .
13 2021 "For profit - Corporation"               .
13 2022 "For profit - Corporation"               .
13 2023 "For profit - Corporation"               .
14 2017 "For profit - Corporation"               .
14 2018 "For profit - Corporation"               .
14 2019 "For profit - Corporation"               .
14 2020 "For profit - Corporation"               .
14 2021 "For profit - Limited Liability company" .
14 2022 "For profit - Limited Liability company" .
14 2023 "For profit - Limited Liability company" .
15 2017 "For profit - Corporation"               .
15 2018 "For profit - Corporation"               .
end

[Clyde Schechter]

This code will identify those and only those observations where the num_id, at some point in its history had ownership == For Profit - Corporation and then at some later date it had "For profit - Limited Liability company" ownership status. The for-profit limited liability observations that follow for-profit corporation ownership in those num_id's will have wanted == 1, and the for-profit corporation ownership observations will have wanted = 0. Everything else will have wanted = .

by num_id (year), sort: gen was_for_profit = ///
    min(sum(ownership == "For profit - Corporation"), 1)
gen wanted = was_for_profit ///
    & ownership == "For profit - Limited Liability company"
replace wanted = . if !inlist(ownership, "For profit - Corporation", ///
    "For profit - Limited Liability company")

The description of what you want in #1 is open to some interpretation; if my interpretation is not what you had in mind, please post back with a more detailed explanation. Or, probably better, show in the example data what your desired result would look like.

[gani davlatyov]

Hi Clyde,

This was extremely helpful.
To answer your question, I'm interested in knowing the number of facilities that changed their ownership status annually. This information will help gauge the magnitude of this issue and potentially identify specific periods, for example, during the pandemic, when more facilities converted to LLCs.

Further, I need to conduct two sets of analyses. 1) Time-to-event analysis to identify factors that help predict ownership changes, and 2) difference-in-difference analysis to compare changes over time between facilities that experienced ownership changes and those that did not.

[Clyde Schechter]

In #1, you spoke about a specific type of ownership change: from for profit corporation to for profit limited liability corporation. In #3 you seem to be referring to any kind of ownership change at all, involving any initial type and any subsequent type. To be clear, the code in #2 deals only with the specific transition from for profit corporation to for profit limited liability corporation.

[gani davlatyov]

Clyde, my apologies for any confusion. I am specifically investigating ownership changes from for-profit corporations to for-profit LLCs. Upon reviewing my data, I noticed a significant number of facilities undergoing this specific change. Now, I aim to examine this trend in more detail.