Matching COMPUSTAT with Thomson One M&A
Posted: 07 March 2016 07:01 PM   [ Ignore ]
Newbie
Rank
Total Posts:  5
Joined  2016-03-07

Hi everyone,

I am doing a Mergers and Acquisitions analysis. My M&A deals are downloaded from Thomson One Banker M&A. However, the identifier are 6-digit CUSIP. Now I need to match each companies with COMPUSTAT and CRSP. What I did is to match the 6-digit CUSIP from Thomson with the extracted CUSIP in COMPUSTAT (I kept the first 6-digit). However, this can only match around 50% of my companies. I am new to this, so I don’t know what percentage will drop normally.

Can anyone also tell me a better way to match Thomson One Banker and COMPUSTAT/CRSP?

Many Thanks!

Bo

Profile
 
 
Posted: 09 March 2016 09:54 AM   [ Ignore ]   [ # 1 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

hi Bo,

Sounds like what you did is the correct way. Are there other firm identifiers (other than CUSIP) in Thomson One?

You could look into a handful of cases and look into more detail why they don’t match. M&A data in SDC has both parent and subsidiary details for the acquiring firms (and only the parent is listed), so if you try to match a subsidiary to CRSP that could be a reason for not finding a match.

Hope this helps,

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: 13 May 2016 09:56 AM   [ Ignore ]   [ # 2 ]
Newbie
Rank
Total Posts:  5
Joined  2016-03-07

Hi, Joost

Thanks for the replay. I followed your advice and performed a better match. However, I have a new problem when trying to get the perfect match.

I matched 6-digit cusip from SDC with the 6-digit cusip (originally 8-digit ncusip) from CRSP. There are several cases when a company ( identified by 6-digit cusip) have more than one issues (multiple permno). For those one-to-many relationship between cusip and permno, how can I choose the “right” issue to calculate CAR? How to do this by looking at the share class?

Here are some examples from my sample:
scusip entity date         cusip ncusip permco permno company_name   ex sh cl
001957 10401 21-Apr-94 00195750 00195710 20103 10401 A T & T CORP 1 11
scusip entity date         cusip ncusip permco permno company_name   ex sh cl
001957 86746 10-Mar-99 00195720 00195720 20103 86746 A T & T CORP 1 11 A
scusip entity date         cusip ncusip permco permno company_name   ex sh cl
001957 86747 10-Mar-99 00195730 00195730 20103 86747 A T & T CORP 1 11 B
scusip entity date         cusip ncusip permco permno company_name   ex sh cl
001957 87831 27-Apr-00 00195740 00195740 20103 87831 A T & T CORP 1 11
     
     
scusip entity date         cusip ncusip permco permno company_name ex sh cl
989524 76566 27-Feb-91 98952410 98952410 10841 76566 ZILOG INC 3 11
scusip entity date         cusip ncusip permco permno company_name ex sh cl
989524 90099 12-Mar-04 98952430 98952430 10841 90099 ZILOG INC 3 11
     
     
scusip entity date         cusip ncusip permco permno company_name     ex sh cl
989511 85956 29-Apr-98 98951110 98951110 34733 85956 ZIFF DAVIS INC 1 11
scusip entity date         cusip ncusip permco permno company_name     ex sh cl
989511 86762 31-Mar-99 98951120 98951120 34733 86762 ZIFF DAVIS INC 1 11


Thanks for your help.

Bo

Profile
 
 
Posted: 13 May 2016 04:22 PM   [ Ignore ]   [ # 3 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

Do you have access to the CCM linktable? This is a general matching issue as firms can have class A, class B etc securities. The linktable is probably a good way to find the common shares permno.

Hope this helps,

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: 15 May 2016 08:46 AM   [ Ignore ]   [ # 4 ]
Newbie
Rank
Total Posts:  5
Joined  2016-03-07

Hi, Joost

I have the access to the CCM linktable, I’ll have a look at it.

Thank you very much.

Bo

Profile
 
 
Posted: 15 May 2016 10:24 AM   [ Ignore ]   [ # 5 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

Sounds good!

Best,

Joost

 Signature 

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

Profile