WCP Series 2: STATA Application in Finance, Banking, and Accounting Research

Fintech Update – Center for Fintech and Banking UNS (UNS Fintech Center) held a workshop on “STATA for Various Empirical Studies in Finance, Banking, and Accounting” on Friday (11/09/2020) as a part of the World Class Professor (WCP) Program Series. The workshop was held online through the Zoom Meeting application with three speakers, Prof. Siong Hook Law (Universiti Putra Malaya, Malaysia), Dr. Tastaftiyan Risfandy, Ph.D. (Universitas Sebelas Maret, Indonesia), and Aldy Fariz Achsanta, M. Rech (University of Limoges, France) Dewanti Cahyaningsih M.Rech led the event opened by the Chief of UNS Fintech Center, Dr. Irwan Trinugrogo, Ph.D., as a moderator. In his opening remark, Dr. Irwan Trinugroho mentioned that his workshop is the second in the World Class Professor (WCP) Series held by UNS Fintech Center and hopes that the workshop will benefits participants in using STATA.

The first material on “Panel Data Analysis in Banking, Finance, Accounting Workshop: Short Panels (Micro Panels)” was delivered by Prof. Siong Hook Law, who discussed the use of dynamic panel GMM estimator. One of the most significant data analysis problems, Prof. Siong Hook Law explained, is the biased standard error when researchers do not pay close attention to the actual variability of coefficient. “Biased standard error will lead to an incorrect conclusion,” Prof. Siong Hook Law stated. Before concluding his presentation, Prof. Siong Hook Law also shared the data analysis method using STATA and the examples of the commands.

Following the first material, Dr. Tastaftiyan Risfandy, Ph.D., delivered the second material on “Hausman-Taylor Regression with STATA” and explained the use of the method. Dr. Tastaftiyan explained the strength of STATA compared to other data analysis software, starting from automatic command to extract data and identifying time-invariant and time-variant variables using the endogenous variable. The last material on “Event Study using STATA” was delivered by Aldy Fariz Achsanta, M.Rech. An event study is a method used to measure the effect of a company’s action, such as debts, mergers, or income announcements. This method can also be applied to examine the relationship between stock price and unexpected events. At the end of his explanation, Aldy shared a step-by-step process in conducting an event study using STATA.

Participants showed their enthusiasm by submitting questions for speakers after speakers delivered all materials. Fintech Media Team