Matching SDC Mergers data with Compustat historical data
Posted: 25 June 2014 10:38 AM   [ Ignore ]
Newbie
Rank
Total Posts:  2
Joined  2014-06-25

Hi!

Anybody have any good guides/links/explanations on how to best merge the data from SDC with Compustat data? As far as I know STATA is easiest.

Another question, I am trying to look at target firms and takeovers, as such, I need some financial data from Compustat. The problem is when f.ex target firms are taken over in 98’, the data disappears for the remaining period of my sample, till 10’. Any suggestions on how to handle that?

Thanks!
Kris

Profile
 
 
Posted: 25 June 2014 05:40 PM   [ Ignore ]   [ # 1 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

hi Kris,

I would expect that you won’t be able to match target firms after the takeover. When a firm is taken over, and the #shareholders drops to below 500 (I believe), which would normally be the case. then the firm no longer needs to file reports with the SEC (not longer listed publicly). That would explain these go off the radar. For the firm reappearing after 10 years, it may have been spun off again.

As for matching, I suppose it is about personal preferences. For ‘assembling’ datasets, I quite like SAS.

best regards,

Joost

 Signature 

To reply/post new questions: Please use the group WRDS/SAS on Google Groups! http://groups.google.com/d/forum/wrdssas

Profile
 
 
Posted: 26 June 2014 03:05 AM   [ Ignore ]   [ # 2 ]
Newbie
Rank
Total Posts:  2
Joined  2014-06-25

Thanks Joost!

That’s one of the issues, as I know the firms will disappear. However, I know there’s several academic journals (http://www.sciencedirect.com/science/article/pii/S0378426614000272 f.ex) looking at premium and the characteristics of target firms before the merger. The question is when I should look at their characteristics? The year before? Or at the effective merger date?

SAS? I would assume I need a certain software? My university only has STATA, sadly.


Thanks again,
Kris

Profile
 
 
Posted: 26 June 2014 06:56 AM   [ Ignore ]   [ # 3 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

hi Kris,

You’re welcome smile

If you want to use the financial reports to construct a measure of performance/value, there is little alternative but to use a period before the merger effective date/announcement date. Reports are quarterly or annual, and won’t span just one day (like the merger date). If you use stock return as a measure, then you can be more flexible.

SAS is indeed software; it has ‘discount’ licensing for universities, so maybe you can get your hands on a copy. (Is Stata installed on a network drive? SAS doesn’t have that - it will be installed on your pc; in my university you have to request a copy).

best regards,

Joost

 Signature 

To reply/post new questions: Please use the group WRDS/SAS on Google Groups! http://groups.google.com/d/forum/wrdssas

Profile