Unveiling diversity: Does diversity of uncertainty influence corporate cash holdings?
Description
Overview This package contains the Stata replication code and supporting documentation for the empirical analysis in the paper: "Unveiling Diversity: Does Diversity of Uncertainty Influence Corporate Cash Holdings?" The .do file reproduces all main results in the paper, mapping each Stata command to the tables reported in the manuscript. All code is annotated for transparency and clarity. Requirements • Stata 16 or later (needed for reghdfe and psmatch2 commands) • The following Stata user-written packages: o reghdfe (for high-dimensional fixed effects regressions) o psmatch2 (for propensity score matching) o ebalance (for entropy balancing) To install these in Stata: ssc install reghdfe ssc install psmatch2 ssc install ebalance ________________________________________ Data Manipulation and Variable Construction This section explains how the raw data are transformed into the variables used in the empirical analysis. The dataset is a panel of U.S. firms, identified by gvkey and observed annually (year). Firm-Level Variables (from Compustat) All firm-level controls are defined as ratios to total assets to ensure comparability across firms and time: - cashr = Cash / Total Assets - debtr = Total Debt / Total Assets - rndr = R&D Expense / Total Assets - advr = Advertising Expense / Total Assets - capxr = Capital Expenditures / Total Assets - ebitr = EBIT / Total Assets - divr = Dividends / Total Assets - sgar = SG&A Expenses / Total Assets - fixar = Fixed Assets / Total Assets - lnta = log(Total Assets), proxy for firm size