Use log or use Inverse Hyperbolic Sine transformation?

 When you have a variable whose range of value is extremely large, you may want to transform it by using log-transformation or Inverse Hyperbolic Sine transformation. What is the difference between these two?

1) When there are positive and non-0 values, then these two methods generate similar results. 

2) When there are 0 values, then use Inverse Hyperbolic Sine transformation instead of using log(n+0.00001) or log(n+1). 

stata code:

gen var2= asinh(var)

For more explanation, check this webpage by Professor Marc F. Bellemare. 

Reference:

MacKinnon, J. G., & Magee, L. (1990). Transforming the dependent variable in regression models. International Economic Review, 315-339.

Pence, K. M. (2006). The role of wealth transformations: An application to estimating the effect of tax incentives on saving. Contributions in Economic Analysis & Policy, 5(1).