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ask: how to apply control variable on Eviews?

Posted: Sun Nov 30, 2008 10:13 pm
by riza
im using the eviews 6 enterprise edition

the model: CAR = a0 + b1AEit + b2CFOit + b3+CFFit +b4CFIit +eit

where:
CAR = cumulative abnormal return
AE= accounting earning
CFO= cash flow from operating activities
CFI= cash flow from investing activities
CFF= cash flow from financing activities

the sample taken from the periode 2005-2006 (2 years) with consist of 17 company's each year.

i'm using the pool regression method (panel data). and wants to use the Control Variable 'Total Asset'. which mean i want to split the sample into two categories (small asset and large asset). How to apply this in eviews? is it using dummy variable? please somebody explain these in-a-click way rather in eviews programming language. i already read the eviews user's guide but still dont get it.

thanks in advance.

Re: ask: how to apply control variable on Eviews?

Posted: Tue Dec 09, 2008 8:36 am
by riza
so many has seen this thread..but none of them is aswered :(

Re: ask: how to apply control variable on Eviews?

Posted: Tue Dec 09, 2008 8:58 am
by startz
Do you simply want to set the sample befor running the estimate?
smpl if total_asset>1000000
ls
smpl if total_asset<1000000
ls

Re: ask: how to apply control variable on Eviews?

Posted: Thu Dec 11, 2008 2:44 am
by riza
yea..i want to set the control variable before doing the estimation.
@startz
i dont get what u mean. where should i put those command? can u explain in more details way?
i means...in a-click-way rather than eviews command typing. sorry..but im really newbie in using eviews.
thanks anyway for the helps

Re: ask: how to apply control variable on Eviews?

Posted: Wed Jan 14, 2009 9:23 pm
by riza
im done with splitting the sample into two groups (smallfirm and largefirm). i defined it using @group at the pool object..is it correct?
and then..how do i insert and estimate the dummy variable (let say i want to name it the DSIZE var) in the new model:

CAR = a0 + b1DSIZEit + b2AEit + b3CFOit + b4+CFFit +b5CFIit +eit
where; smallfirm =0
largefirm=1

please help. this is for my thesis research. really confused with the manual. i'm so sorry if the question is simple. need further assistance!

thanks