How to treat missing debt value in COMPUSTAT
Posted: 15 June 2016 10:01 AM   [ Ignore ]
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Hi everyone,

I am calculating book leverage ratio in COMPUSTAT. There are some firm-year have missing value of debt. I understand that sometimes COMPUSTAT documents missing value of debt even the liabilities are non-zero. In those cases, it’s better to replace the missing debt value as zero. But I have trouble to find the corresponding COMPUSTAT items for debt and liabilities to do this conversion.

Can someone please tell me what COMPUSTAT data itmes should I use, and is there a better way to treat the missing debt value?


Best,
Bo

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Posted: 16 June 2016 02:29 PM   [ Ignore ]   [ # 1 ]
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hi Bo,

Replacing missings with zero makes sense, although dropping such obs would also soon good to me.
Common debt variables in Funda are:
DLC Debt in Current Liabilities - Total
DLTT Long-Term Debt - Total

Best,

Joost

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