compustat - foreign firms
Posted: 21 October 2013 05:42 PM   [ Ignore ]
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Dear forum,

Anybody is familar with the job of indentifying foreign firms from the compustat and audit analytics?

i noticed there is a FIC code in compustat, curcd (currency), curncd - so called native currency in compustat data. Are any other variable i could use in compustat for this purpose I am missing here? I am using FUNDA of compustat.

Also, it doesn’t seems to me there are foreign company code in the audit fees data. anybody know any variable in this data i can use for my purpose?

Thanks a lot,
Zenghui

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Posted: 21 October 2013 07:59 PM   [ Ignore ]   [ # 1 ]
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hi Zenghui,

Another possibility is to check for ‘-ADR’ in the firm name (in Compustat); these are cross-listed firms. Probably that will largely overlap with FIC.

I wouldn’t know how to get to audit fees if it is not in Audit Analytics (I suppose there are different rules for cross-listed firms when it comes to audit fee disclosure)

best regards,

Joost

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Posted: 24 October 2013 12:54 PM   [ Ignore ]   [ # 2 ]
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Joost,

That is very helpful!

Cheers,
Zenghui

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Posted: 22 August 2014 02:06 PM   [ Ignore ]   [ # 3 ]
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You can use Datastream for such information.
-If you already have the ISIN or SEDOL of that company, forward to step 3.
-If you start from Compustat or CRSP:

1. Use CUSIP 9-digit for your company from Compustat or CRSP
2. Find its ISIN from Datastream/Worldscope (this part I haven’t tried), but you can try to follow:
http://financialresearch.blog2blog.nl/26685/Using+CUSIP+to+search+in+databases.html

then:
3. If you have firm ISIN or SEDOL, you can use it to find from Datastream the datatype QTEALL.
This returns all the markets that a stock is listed on, including the primary market.
And you can use datatype GDSPNM to find the country of domicile.

That way you have more information about where a firm is from and where it is listed and identify the correct “nationality” of that firm.
This is not a fast way but I think a better way to do research.
DN

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Posted: 23 August 2014 08:30 AM   [ Ignore ]   [ # 4 ]
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hi Diep,

Great info - I was just looking into finding cross-listed firms, and DataStream’s QTEALL is going to safe my life! (I hope smile)

I found a blog post on how to find cross-listed firms in DataStream here: http://datateamoftheeur.wordpress.com/2013/05/23/faq-how-can-i-find-cross-listed-stocks-in-datastream/

For completeness: ISIN info for North America can be found in Compustat Security, http://wrds-web.wharton.upenn.edu/wrds/tools/variable.cfm?library_id=129&file_id=82444
The ISIN field looks well populated.

I have a question though - some firms have multiple ISIN’s, will the filter on QTEALL ‘miss’ these? For example, Royal Dutch Shell has two ISINs: http://www.shell.com/global/aboutshell/investor/share-price-information/ticker-and-isin-codes.html

best regards,

Joost

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Posted: 23 August 2014 11:47 PM   [ Ignore ]   [ # 5 ]
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I have no idea about the case of Shell. Seems like Datastream misses this case. I retrieved data on all the different ISINs of the company and received inconsistent result.
(Data in picture).

So WC06026 is for Nation, which should report the country of domicile (http://www-cgi.uni-regensburg.de/Fakultaeten/WiWi/roeder/DownloadsGeneral/Datastream Worldscope.pdf, page 20). In the case of ISIN GB00B03MLX29, Datastream is correct in saying the company’s country of domicile is in the UK, and the security is listed primarily in the Netherlands.

Yet in the case of ISIN US7802592060, Datastream was saying the primary market is US, but country of domicile is the Netherlands. I was wondering how this happens, one guess is that since Shell resulted from the merger between a UK and a Netherlands’ firm, and the Netherlands’ firm was crosslisted in the US before the merger. But that’s just my guess.

DN

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Posted: 23 August 2014 11:51 PM   [ Ignore ]   [ # 6 ]
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I can try to direct this question to Datastream then. Hope they will return on Monday. Will let you know how they think.
DN

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Posted: 24 August 2014 08:15 AM   [ Ignore ]   [ # 7 ]
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hi Diep,

Thanks for looking into this! RD Shell happened to be my random sample of size 1 to see how things work. If ISIN usually works (and this being an outlier) it is fine. Thanks for your offer to follow up with DataStream, though!

best regards,

Joost

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Posted: 25 August 2014 08:26 PM   [ Ignore ]   [ # 8 ]
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Datastream replied. They were saying that after the merger between the UK and the Netherland firms to form the current Shell, they still kept the two firms separate for customer feedback and tax treatment in different countries purposes. So there are two firms identifying Shell and the two firms have different recorded countries of domicile.

They point to the following document to explain the situation:
http://extranet.datastream.com/Data/Equities/documents/ShellandRoyalDutchMerger.doc

Seems like this is a special case but I don’t know how Datastream treated other cross-border mergers like this or this is the only case.
DN

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Posted: 27 August 2014 06:58 AM   [ Ignore ]   [ # 9 ]
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hi Diep,

Interesting - I guess there is a story behind every outlier smile

Thanks for following up!!

Joost

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Posted: 27 August 2014 09:53 AM   [ Ignore ]   [ # 10 ]
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Okay so this is the situation. What we were talking about for companies like Shell and Unilever is dual-listing. Cross-listing is a different concept.

See:
http://en.wikipedia.org/wiki/Dual-listed_company
http://en.wikipedia.org/wiki/Cross_listing

So to my understanding, in the case of dual-listing, two or more companies can represent one multinational company and you can’t tell whether one of the exchanges is the primary. In the case of cross-listing you have a domestic market which is the primary one and other secondary markets.

But thanks God they provide me with a list of dual-listed companies that are treated like Shell in Datastream! (See image)

DN

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Posted: 27 August 2014 10:57 AM   [ Ignore ]   [ # 11 ]
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Interesting - I wasn’t aware of this distinction..

thanks for posting it!

Joost

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