NAICS
Posted: 03 February 2015 12:50 PM   [ Ignore ]
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Hello!

I have a question concerning NAICS codes. NAICS employs a 6-digit coding system and I was told that all firms in wrds datasets have a 6-digit NAICS code which is the most precise one. 2-digit designates the Sector, 3-digit the Subsector, 4-digit the Industry group, 5-digit the NAICS international industry and 6-digit the National industry. But my output from CRSP/Compustat contains also firms having “only” 2-, 3-, 4- or 5-digit NAICS instead of the most precise one. Is there something I do wrong in choosing my data?

Thanks in advance!!!

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Posted: 03 February 2015 07:56 PM   [ Ignore ]   [ # 1 ]
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hi Kr0410,

Yes, I recognize what you are describing. You are not doing something wrong, this is how the data is like.

best regards,

Joost

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Posted: 04 February 2015 11:34 AM   [ Ignore ]   [ # 2 ]
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Hi Joost,

thanks for your reply! Do you have an idea why it is this way? Is it just because they do not know the exact industry? Or might there be another reason?

Thanks!

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Posted: 04 February 2015 06:19 PM   [ Ignore ]   [ # 3 ]
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hi,

I’m not sure; SICH (historic SIC code) in Funda is rather irregular as well (it is often missing). One thing you could do is to use the current NAICS code from Compustat Company (if that one is 6 digits).

best regards,

Joost

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