topic Re: Calculate a dummy variable for before and after CEO turnover in SAS Programming

Calculate a dummy variable for before and after CEO turnover

Fer_ — Sun, 15 Oct 2023 23:50:59 GMT

Hello all,

I want to create a dummy variable which equal to one if CEO turnover happen one year before my event and equals to zero if CEO turnover happen one year after the event. I have gvkey and year for each firm. Executive ID for CEOs and also a date for the event (year of each event).

Here is my dataset:

GVKEY year Executive ID

001050 1990 01891

001050 1991 01891

001050 1993 01891

...

001052 2001 21841

001052 2002 21841

001052 2003 21841

....

I appreciate your help.

Re: Calculate a dummy variable for before and after CEO turnover

andreas_lds — Mon, 16 Oct 2023 08:31:58 GMT

Sorry, but i don't understand what you expect as output. Also i don't see the variable containing the event date in your data, in fact i don't see data at all. "Data" means a working data step creating the data you have.

Re: Calculate a dummy variable for before and after CEO turnover

Fer_ — Mon, 16 Oct 2023 08:39:11 GMT

Thanks for your reply. First, I want to calculate CEO turnover for the dataset that I have which has GVKEY, Executive ID and year.

Then, if I need a dummy variable which equals to one if CEO turnover happen one year before my event and equals to zero if CEO turnover happen one year after the event.

The main question is calculating CEO turnover.

Re: Calculate a dummy variable for before and after CEO turnover

andreas_lds — Mon, 16 Oct 2023 09:37:12 GMT

For both gvkey you have posted the ExecutiveID is constant, so: what do expect exactly as output from the information you have posted?

Re: Calculate a dummy variable for before and after CEO turnover

PaigeMiller — Mon, 16 Oct 2023 12:30:26 GMT

@Fer_ wrote:

Thanks for your reply. First, I want to calculate CEO turnover for the dataset that I have which has GVKEY, Executive ID and year.

Then, if I need a dummy variable which equals to one if CEO turnover happen one year before my event and equals to zero if CEO turnover happen one year after the event.

The main question is calculating CEO turnover.

What event are you referring to? How would we detect this event from the data you show?

Re: Calculate a dummy variable for before and after CEO turnover

Fer_ — Mon, 16 Oct 2023 12:53:51 GMT

Let me change my dataset to :

event=1 means that company have the event at that year and 0 means it does not have that event.

GVKEY year Executive ID Event

001050 1990 01891 0

001050 1991 01891 0

001050 1993 01891 1

...

001052 2001 21841 0

001052 2002 21841 1

001052 2003 21841 1

Re: Calculate a dummy variable for before and after CEO turnover

PaigeMiller — Mon, 16 Oct 2023 13:03:44 GMT

You haven't addressed the issue from @andreas_lds , who said

so: what do expect exactly as output from the information you have posted?

Please show us what the output from this example should look like.

Re: Calculate a dummy variable for before and after CEO turnover

Fer_ — Mon, 16 Oct 2023 13:15:34 GMT

I need a dummy variable which equals to one if CEO turnover happen one year before the event and equals to zero if CEO turnover happen one year after the event.

The process of the codes will be like:

First, I want to have CEO turnover for the dataset according to GVKEY, Executive ID and year.

Second, having a dummy variable which equals to one if CEO turnover happens one year before the event (event=1) and zero, one year after that event.

It has two steps, calculating CEO turnover and then creating dummy variable when event=1.

dummy =1 when event=1 and CEO turnover happens one year before the year that I have event=1 and dummy=0 when event=1 and CEO turnover happens one year after the year that I have event=1.

Re: Calculate a dummy variable for before and after CEO turnover

PaigeMiller — Mon, 16 Oct 2023 13:26:00 GMT

I asked:

Please show us what the output from this example should look like.

You didn't show us what you want. Please SHOW US the desired output data set from this data.

Also, you do not have even a single instance of CEO turnover in your data. Please provide a data set that represents the problem description.