ask: how to apply control variable on Eviews?
Posted: Sun Nov 30, 2008 10:13 pm
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.
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.