Hello Everyone,

First of all I really appreciate the help of this forum. It is my first time to do a statistical analysis for my upcoming thesis therefore I ask for some advise and guidance from you guys. Since I am still at an early stage it would be great if someone could give me ideas for the right approach to solve the following problem:

Basically I will have to analyze abnormal stock returns for specific types of acquisitions. To do so I will collect all the necessary M&A data from SDC Platinum. Then as I know this has to be merged with daily stock prices. Since I focus on public US comps only , I want to retrieve the stock data from CRSP. The analysis process should be done with STATA. I will work with a classical event stuy approach.

The big question to me is now in very general what is the best approach to

1) collect the data within WRDS (CRSP) and SDC in terms of variables and then

2) what do I need to do to merge the datasets.

I read something about extending the 6 digit CUSIP from SDC to make it fit the 8 or 9 digit CUSIP in CRSP. Is that what you guys recommend me to do? Or are there other more efficient ways? And how does actually the process of merging the different identifiers work? Would you reccomend doing this in STATA or with the WRDS CRSP Tool (translate to PERMCO/PERMNO)?

It would be helpful if someone could give me a brief “big picture”. Also if there is any guidline or explanation guide you recommend let me know.

Looking forward to your helpful feedback.

Thanks a lot and best regards

Lukas