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Combing numerical and categorical variables

Posted: Wed Jul 27, 2011 6:02 pm
by fcdh
Dear EVIEWS Users,

Since I am not an advanced user of EVIEWS and I am working on some research questions I would like to ask your advice wrt the best way to tackle this issue:

My aim is to research the abnormal returns in a post merger and acquisitions period. More important is that I want to research what deal characteristics influences these abnormal returns. So far I have the following variables:

- Abnormal returns (numerical)
- Firm specific accounting variables, Leverage/profitability/Size (Numerical)
- Deal Attitude: friendly/hostile (categorical)
- Industry: Industry/consumer products/energy/finance (categorical)
- Target Nation: cross border or domestic (categorical).

I thought with using dummies I would be able to run the required regressions. However I am kinda stuck on the best way to perform it. If anyone have some advice for me, it would be very well appreciated!

Thanks in advance!
Gr.