Contributor
Posts: 50

# CEO tenure

Hi,

Attached is data I'm working with. I want to decompose the tenure variable (the number of years beginning from the year when the ceo took office) into: 1. Early years: an indicator variable that equals 1 for firm-years that correspond to  the first 3 years of a ceo's tenure and 1 otherwise 2.Years_3_5: an indicator variable that equals 1 if tenure is between years 3 and 5 years and 0 otherwise and 3. Year_6_and _over: an indicator variable that equals 1 for tenures after 5 years, and 0 otherwise.

Thanks.

Posts: 1,848

## Re: CEO tenure

Why do you want 3 variables if you can create one with 3 values?

There are several ways to do it:

1)  if tenur le 3 then flag=1; else

if tenur le 5 then flag=2; else flag=3;

2) select (tenur);

when (1,2,3) flag=1;

when (4, 5)   flag=2;

otherwise      flag=3;

end;

3) creating a format:

proc format lib=work;

value fmt

1-3 = '1'

4-5 = '2'

6-high = '3'

; run;

data want;

set have;  /* imported xlsx file */

flag=put(tenur,fmt1.); /* using the format method or insert here any other preffered method from above */

run;

Contributor
Posts: 50

## Re: CEO tenure

Thank you.

I would want to observe certain characteristics of a CEO over their tenure. Tenure starts in the fiscal year they take office and increases with each year the CEO stays in office. Eg. if the CEO's tenure was 10 years, I would want to study the decisions that CEO took in their first three years, their decisions between the third and fifth years, and the sixth year and above. In the same vein, if a CEO's tenure is 1 year for instance, then I can only study their decisions for that year only. I don't know if these codes takes my point into consideration.

Thank you.

Posts: 1,848

## Re: CEO tenure

I'm not an analyst but, with many sas procedures you can get results BY KEY.

In your case, the key - as much as I understand - is built of the 3 variables:

Company_ID  PERSONID  and the calculated FLAG (or any other name you preffer)

while the FLAG represents the groups of the TENURE - as you defined.

For furthere help, if need to choose sas procedure, you will need sas analyst advise.

Contributor
Posts: 50

## Re: CEO tenure

Thanks
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