Were do i find in how many business segments a firm operates in?
Posted: 18 May 2016 06:37 AM   [ Ignore ]
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I have a question about the compustat segment file. All firms only get one SIC (4digit), but it is possible that they operate in more segments.
How can i find in how many segments a firm is operating??

I did found the segments name sometimes differ per company, but than they still have the same SIC code (or missing SIC).

I need this to calculate the entropy measure of diversification.

thank you in advance, Eva

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Posted: 18 May 2016 05:11 PM   [ Ignore ]   [ # 1 ]
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hi Eva,

On wrds, there is wrds_segmerged, which has the data you need. Here is a macro that should help you get started: https://gist.github.com/joosti/213050de42d6e78f1634

Best Regards,

Joost

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