Differences between COMPUSTAT and CRSP SIC codes and related effects on research

Research output: Contribution to journalArticlepeer-review

Abstract

Differences between SIC codes assigned to companies by COMPUSTAT and CRSP are examined. Large differences are observed at two-, three-, and four-digit levels. Correlations of intra-industry monthly stock returns are larger, and variances of intra-industry financial ratios are smaller for industries based on COMPUSTAT codes. Replication of a portion of Freeman and Tse (1992) produces significant results using COMPUSTAT codes, consistent with the original research, but insignificant results for CRSP codes.

Original languageEnglish
Pages (from-to)115-128
Number of pages14
JournalJournal of Accounting and Economics
Volume18
Issue number1
DOIs
StatePublished - Jul 1994
Externally publishedYes

ASJC Scopus Subject Areas

  • Accounting
  • Finance
  • Economics and Econometrics

Keywords

  • Capital markets methodology
  • Industry classification
  • SIC codes

Fingerprint

Dive into the research topics of 'Differences between COMPUSTAT and CRSP SIC codes and related effects on research'. Together they form a unique fingerprint.

Cite this