Winner's Curse in Acquisitions (Academic Paper)

McNair Project

Winner's Curse in Acquisitions (Academic Paper)
Project Information
Project Title
Start Date
Deadline
Primary Billing
Notes
Has project status
Copyright © 2016 edegan.com. All Rights Reserved.

Three Big Pulls

SDC Mergers & Acquisitions

Add the following (A=L+E) ---- DONE

TargetTotalAssets	real, TASS: Taget Financials: Total Assets
TargetTotalLiabilities	real,  TLIA: Total Liabilities Last Twelve Months ($ Mil) 
TargetCommonEquity	real, COMEQ: Target Financials: Common Equity

Also nice ---- DONE

TargetNetSales	real,  SALES: Net Sales Last Twelve Months ($ Mil)
TargetNetSales2	real, ?
TargetBookValuePerShare	real, BV: Book Value per Share Last Twelve Months ($) 
TargetIntangibles	real, IASS: Intangible Assets Last Twelve Months 
TargetRAndD	real, RND1: Research & Development Expense 1 Year Prior ($ Mil)

Added just in case ---- DONE

Sales
Net Assets
Book Value (Perhaps needed for Tobin's Q?)

Session Details
---------------
Request   Hits    Request Description
   0        -     DATABASES: Domestic Mergers, 1979-Present (MA, OMA)
   1        -     Date Announced: 1/1/1985 to 10/11/2016 (Custom) (Calendar)
   2    300351    Target Nation : US
   3    257921    Acquiror Nation : US
   4    127852    Acquiror Public Status : P
   5     98102    Target Public Status : V, P
   6     63725    Deal Status : C
   7     52739    Percent of Shares Owned after Transaction: 100 to 100
   8              Custom Report: SDC_MA_Oct10v2 (Columnar) - Save As:
                  E:\McNair\Projects\Winner's Curse\Data\SDC_MA_Oct10v2.txt

  Billing Ref # : 1960756
  Capture File  : riceuniv.1960756
  Session Name  : SDC_MA_Oct10v2.ssh

Variables Pulled:
-----------------
Date Announced
Date Effective
Target Name 
Target Industry Sector 
Target Nation
Acquiror Name 
Acquiror Industry Sector 
Acquiror Nation
Pc of Shares Acq
Pc Owned After Transaction
Value of Transaction mil
Enterprise Value mil
Equity Value mil
Acquiror CUSIP
Acquiror Immediate Parent CUSIP
Acquiror Ultimate Parent CUSIP
Target Immediate Parent CUSIP
Target Ultimate Parent CUSIP
Target CUSIP
Acquiror Primary Ticker Symbol
Acquiror Ultimate Parent Primary Ticker Symbol
Target Primary Ticker Symbol
Target Ultimate Parent Primary Ticker Symbol
Target Ultimate Parent Ticker Symbol
Acquiror Primary NAIC Code
Acquiror Ultimate Parent Primary NAIC Code
Target Primary NAIC Code
Target s Ultimate Parent Primary NAIC Code
Number of Bidders
Status 
Value Est 
Value Amended Flag
Date Announced is Estimated
Consideration Structure
Number of Considerations Offered
Number of Considerations Sought
Consid Structure Description
Pc of Cash
Pc of Other
Pc of Stock
Pc of Unknown
Acquiror Full Name 
Target Name 
Acquiror City 
Target City 
Acquiror Zip Code
Target Zip Code
Acquiror State
Target State
Deal Currency Code
Target Bankrupt
Challenged Deal
Debt Restructuring
RecapDefense  
Government Owned Involvement Flag
Joint Venture
Restructuring
Acquiror is a Leveraged Buyout Firm
LBO 
IPO FlagY N 
Target is a Leveraged Buyout Firm
Merger of Equals
Reverse Takeover
Deal Began as a Rumor
Acquiror is a White Knight
White Knight Defense
Back End Defense
FlipOver Defense
Voting Plan Defense
Poison Pill
Creeping Acquisition
Repurchase Defense
Pacman Defense
Lockup FlagY N 
Target Lockup
Greenmail
Asset Lockup
Scorched Earth Defense
SelfTender Defense
Stock Lockup
Defense
White Squire
Acquiror Includes Employees
Acquiror Includes an ESOP
Significant Family Ownership of Target
Acquiror Lockup
Financial Acquiror
2 Step Spinoff
Acquiror Includes Mgmt
Open Market Purchases
Proxy Fight
Purpose Code
Related Deals
Foreign Provider of Funds
Stock Swap
Asset Swap Flag
Sweep the Street
SelfTender
Tender Offer
Unsolicited
Acquiror TermFee 
Target TermFee 
Forced vote provisions FlagY N
Walkaway
Acquiror Ultimate Parent Street Address 1
Acquiror Ultimate Parent Street Address 2
Target Ultimate Parent Street Address 1
Target Ultimate Parent Street Address 2
Acquiror Primary Stock ExchangeName
Target Primary Stock ExchangeName

COMPUSTAT

Use Compustat Industrial Annual (annual data)

Criteria:
-----------------
1970-1 to 2015-11
GVKEY, Entire Dbase
tab delimited, date in ISO8661

Variables:
----------
GVKEY
CONM
TIC
CUSIP
EXCHG
FYR
CURNCD
FYEAR
AT
CEQ
INTAN
EBITDA
REVT
SALE
NAICSH
SICH
MKVALT
PRCC_F
C
INDL
FS
STD

Note: TobinsQ is Market over book so MKVALT/AT (also pulled common stock and price)

DROP TABLE compustatpull; CREATE TABLE compustatpull ( gvkey int, datadate date, Fyear int, industry_format varchar(5), consol varchar(20), popsrc varchar(20), datafmt varchar(5), tic varchar(20), cusip varchar(20), conm varchar(50), curcd varchar(3), curncd varchar(3), fyr int, act float, ceq varchar(20), ebitda float, intan float, revt float, sale float, exchg varchar(20), costat varchar(5), naicsh float, sich varchar(20), mkvalt varchar(20), prcc_f varchar(20), county varchar(50), naics varchar(10), sic int, states varchar(2), ipodate date);

\COPY compustatpull FROM 'CSTAT-10Oct-ff1feb81b9f166ad.txt' WITH DELIMITER AS E'\t' HEADER NULL AS CSV --464894

All loaded up

CRSP

Use CRSP Annual, Daily Stock File

Criteria:
-----------------
PERMNO, Entire Dbase
1980-01-01 to 2015-12-31
tab delimited, date in ISO8661

Variables:
----------
PERMNO
CUSIP
NCUSIP
COMNAM
TICKER
PERMCO
EXCHCD
SICCD
NAICS
PRIMEXCH
PRC
VOL
NUMTRD
RET
SHROUT
VWRETD
EWRETD

Governance Measures

Projects --> Winner's Curse --> Data

Open the GovernanceVARS.txt

These are

• staggered boards
• limits to shareholder bylaw amendments
• limits to shareholder charter amendments
• supermajority requirements for mergers
• poison pills
• golden parachutes

To do list

Processing the SDC data:

• Find SIC codes concordance to get NAICS for old data
• Acquirer publicly traded ( must be AMEX, NASDAQ, or NYSE)
• Magic with CUSIPs : CUSIP is a nine digit number (possibly ten, ) Seven issuer, two issue, one check

CRSP processing notes:

• Estimation window 250 days ending 30 days before the Acq. must be at least 50 continuous days before the 30 days window.
• Returns and prices may contain codes. Import as var_char and reprocess?

Other notes:

• See page 9 of the paper for data processing notes.
• Data dictionary for SDC MA: http://www.edegan.com/repository/DD-ThomsonSDCMA.txt

Governance Variables

A list of governance variables can be found in: E:\McNair\Projects\Winner's Curse\Data\GovernanceVARS

Paper Discussion

Variables & Where to Find Them:

Variable	Location
Actual Return	CRSP
Abnormal Return	CRSP
Average Return	CRSP
Weighted Average Return	CRSP
Cumulative Ab. Return	CRSP
Boom	SDC
Competition	Compustat
Distance	SDC + google maps
IT Fixed Effect	SDC
Idiosyncratic Volatility	CRSP (Calculated)
Industry Fixed Effect	SDC
Momentum	CRSP (Calculated)
Private Financial Data	CRSP
Percent Cash	SDC
Previous Acquisitions	SDC
Sales	Compustat
Tobin's Q	Compustat
Turnover	CRSP
VC Fixed Event	SDC & VentureXpert
Governance	Compustat
Friendly vs. Hostile	SDC

Importing the CRSP data into the `winner' database (Amir)

Two important files:
Project --> Winner's Curse --> Data --> SQL --> CRSP_NOTES
Project --> Winner's Curse --> Data --> SQL --> CRSP_CODES

Data file is located in: E:\McNair\Projects\Winner's Curse\Data\CRSP-Oct10-c30cc89e52b70545-1.txt

Issue 1: The text file is 8 GB large and there's no way to open it in Textpad. I'll try to read the file in LogExpert which seems to do a neat job in in opening large files. Otherwise, I'll try to read the first few lines in the terminal. Update: I managed to open the file in LogExpert. However, extremely inefficient to scroll over the file.

I copied the file to Z:\WinnersCurse\CRSP-oct10

Entered the following command in the terminal to read the header:

head -1 CRSP-oct10.txt

CREATE TABLE CRSP (
 PermNo int,
 date date,
 EXcode int,
 SIC int,
 NCUSIP varchar(10),
 Ticker varchar(10), 
 Name varchar(100),
 NAICS int,
 PrimEx varchar(1),
 PERMCO int, 
 CUSIP varchar(12),
 Price real,
 VOL int,
 RET real,
 ShOut int, 
 trade int, 
 EQRET real,
 VRET real
);
 
 

We have unexpected data types in few columns. We'll first start by copying data into a table named CRSPtmp with varchar type for most of the fields.

CREATE TABLE CRSPtmp (
 PermNo varchar(10),
 date date,
 EXcode varchar(10),
 SIC varchar(10),
 NCUSIP varchar(10),
 Ticker varchar(10), 
 Name varchar(100),
 NAICS varchar(10),
 PrimEx varchar(1),
 PERMCO varchar(10), 
 CUSIP varchar(12),
 Price varchar(15),
 VOL varchar(10),
 RET varchar(10),
 ShOut varchar(10), 
 trade varchar(10), 
 EQRET varchar(10),
 VRET varchar(10)
);
 
\COPY crsptmp FROM '/bulk/WinnersCurse/CRSP-oct10.txt' WITH DELIMITER AS E'\t' HEADER NULL AS  CSV
-- COPY 64614281

Next, to create an index on CUSIP:

CREATE INDEX CUSIPIndex
ON crspfinal(CUSIP);

CRSP2 Variable Issues (Jake)

permno-

date-

excode -

sic - letter "Z", value 711 (most are 4 digits),

ncusip -

ticker -

name -

naics -

primex -

permco -

cusip -

Price - Null values, negative numbers,

vol - null values

ret - null values, letter "B" as value multiple times, letter "C",

shout - null values

trade - null values

eqret -

vret -

Importing SDC Data into Winner Database

Session Details
---------------
Request   Hits    Request Description
  0        -     DATABASES: Domestic Mergers, 1979-Present (MA, OMA)
  1        -     Date Announced: 1/1/1985 to 10/11/2016 (Custom) (Calendar)
  2    300400    Target Nation : US
  3    257952    Acquiror Nation : US
  4    127865    Acquiror Public Status : P
  5     98108    Target Public Status : V, P
  6     63732    Deal Status : C
  7     52746    Percent of Shares Owned after Transaction: 100 to 100
  8              Custom Report: SDC_MA_Oct10v4 (Columnar) - Save As:
                 E:\McNair\Projects\Winner's Curse\Data\SDC_MA_Oct10v4.txt
 Billing Ref # : 1962461
 Capture File  : riceuniv.1962461
 Session Name  : SDC_MA_Oct10v4.ssh

We encountered an issue with the variable Purpose Code in our most recent SDC pull. Purpose Code can carry multiple values, so we had extra lines with blanks for every value other than Purpose Code. Rather than doing another SDC pull, we used the following regular expressions to solve:

Find : ^[\s}.* 
Replace : 

Directly below is the original SDC file prior to our fix

E:\McNair\Projects\Winner's Curse\Data\SDC_MA_Oct10v4 -raw

Directly below is the SDC file post-fix

E:\McNair\Projects\Winner's Curse\Data\SDC_MA_Oct10v4

11332 rows were removed as a result of our regular expression use.

Normalizing SDC data

Make sure that the first line of the data file starts with the column names and column name are not preceded by empty lines. Also, remove the summary/report lines at the bottom of the text file.

A copy of the normalizer is save here

E:\McNair\Projects\Winner's Curse\Data\NormalizeFixedWidth.pl

Follow these steps:

1. Activate the Komodo license.
2. Open Komodo IDE 9, there should be a shortcut on your desktop
3. Drag and drop NormalizeFixedWidth.pl in Komdo
4. Click on the start or continue debugging
5. Type : -file=SDC_MA_Oct10v4.txt in Script Arguments textbox.
6. Click on OK
7. Enter the number of last line of the header and press return. This should be the line immediately followed by the first row of data.

##########################################################  
#                  NormalizeFixedWidth.pl                #
#                           v0.01                        #
#                     (c)Ed Egan, 2010                   #
##########################################################

Starting the program...				[Done]
Your run options are:
	File to read from... 			[SDC_MA_Oct10v4.txt]
	File to write to... 			[SDC_MA_Oct10v4-normal.txt]
Opening the input file to read...		[Done]

##########################################################
Choose the last line of the header (inc. blanks):
0	  Date         Date       Target Name             
1	Announced    Effective                            
2	                                                  
3	                                                  
4	                                                  
5	                                                  
6	01/01/85     01/01/85     Gladieux Corp           
7	01/02/85     01/02/85     STG Electrosystems Inc  
8	01/03/85     01/03/85     American Title Co       
9	01/04/85     01/04/85     Bee Chemical Co         

Your Choice: 5


Thank you - Proceeding now...
##########################################################
Determining markers...				[Done]
Processing the header...			[Done]
Processing the body...				[Done]
Removing dead columns...			[Done]
##########################################################
Choose any columns you want repeated down (e.g. 0,1,2):
0	Date Announced 
1	Date Effective 
2	Target Name  
3	Target Industry Sector  
4	Target Nation 
5	Acquiror Name  
6	Acquiror Industry Sector  
7	Acquiror Nation 
8	Pc of Shares Acq 
9	Pc Owned After Transaction
10	Value of Transaction mil
11	Enterprise Value mil
12	Equity Value mil 
13	Acquiror CUSIP 
14	Acquiror Immediate Parent CUSIP
15	Acquiror Ultimate Parent CUSIP
16	Target Immediate Parent CUSIP
17	Target Ultimate Parent CUSIP
18	Target CUSIP 
19	Acquiror Primary Ticker Symbol
20	Acquiror Ultimate Parent Primary Ticker Symbol
21	Target Primary Ticker Symbol
22	Target Ultimate Parent Primary Ticker Symbol
23	Acquiror Primary NAIC Code
24	Acquiror Ultimate Parent Primary NAIC Code
25	Target Primary NAIC Code
26	Target s Ultimate Parent Primary NAIC Code
27	Number of Bidders 
28	Status  
29	Value Est  
30	Value Amended Flag
31	Date Announced is Estimated
32	Consideration Structure 
33	Number of Considerations Offered
34	Number of Considerations Sought
35	Consid Structure Description
36	Pc of Cash 
37	Pc of Other 
38	Pc of Stock 
39	Pc of Unknown 
40	Acquiror Full Name  
41	Target Name  
42	Acquiror City  
43	Target City  
44	Acquiror Zip Code 
45	Target Zip Code
46	Acquiror State 
47	Target State 
48	Deal Currency Code
49	Target Bankrupt 
50	Challenged Deal 
51	Debt Restructuring 
52	RecapDefense   
53	Government Owned Involvement Flag
54	Joint Venture 
55	Restructuring 
56	Acquiror is a Leveraged Buyout Firm
57	LBO  
58	IPO FlagY N  
59	Target is a Leveraged Buyout Firm
60	Merger of Equals
61	Reverse Takeover 
62	Deal Began as a Rumor
63	Acquiror is a White Knight
64	White Knight Defense
65	Back End Defense 
66	FlipOver Defense
67	Voting Plan Defense
68	Poison Pill 
69	Creeping Acquisition 
70	Repurchase Defense 
71	Pacman Defense 
72	Lockup FlagY N   
73	Target Lockup 
74	Greenmail  
75	Asset Lockup 
76	Scorched Earth Defense
77	SelfTender Defense
78	Stock Lockup 
79	Defense  
80	White Squire 
81	Acquiror Includes Employees
82	Acquiror Includes an ESOP
83	Significant Family Ownership of Target
84	Acquiror Lockup 
85	Financial Acquiror 
86	2 Step Spinoff  
87	Acquiror Includes Mgmt
88	Open Market Purchases
89	Proxy Fight 
90	Purpose Code 
91	Related Deals 
92	Foreign Provider of Funds
93	Stock Swap 
94	Asset Swap Flag
95	Sweep the Street
96	SelfTender 
97	Tender Offer 
98	Unsolicited  
99	Acquiror TermFee   
100	Target TermFee   
101	Forced vote provisions FlagY N  
102	Walkaway 
103	Acquiror Ultimate Parent Street Address 1 
104	Acquiror Ultimate Parent Street Address 2 
105	Target Ultimate Parent Street Address 1 
106	Target Ultimate Parent Street Address 2 
107	Acquiror Primary Stock ExchangeName 
108	Target Primary Stock ExchangeName 
109	Target Net Sales LTM mil
110	Target Net Assets mil
111	Target Total Assets mil
112	Target Common Equity mil
113	Target Book Value Per Share LTMUS  
114	Target Intangible Assets mil
115	Target R D One Year Priormil
116	Target Total Liabilities mil

Your Choice:


Thank you - Proceeding now...
##########################################################

Writing the output file...			[Done]

##########################################################
Thank you for processing data with NormalizeFixedWidth
Please cite any Ed Egan corporate finance paper in your 
references or otherwise acknowledge this help to your work.
(c)Ed Egan, 2010. Enjoy. (US dollars preferred.)
##########################################################

The output is now stored in the same directory: E:\McNair\Projects\Winner's Curse\Data\SDC_MA_Oct10v4-normal.txt

To import the data into winner database, I'll copy the above file to the /bulk directory.

The code to create the SDC table is stored in \McNair\Projects\Winner's Curse\Data\SQL\SDC_TABLE.

Create Table SDC(
 Date_Announced date,
 Date_Effective date,
 Tgt_Name varchar(80),
 Tgt_Industry varchar(100),
 Tgt_Nation varchar(100),
 Acq_Name varchar(80),
 Acq_Ind varchar(100),
 Acq_Nation varchar(100),
 Pc_Shares_Acq varchar(100),
 Pc_Owned_After_Transaction varchar(100),
 Value_Transaction varchar(100),
 Enterprise_Value varchar(100),
 Equity_Value varchar(100),
 Acq_CUSIP varchar(100),
 Acq_prnt_CUSIP varchar(100),
 Acq_Ultimate_CUSIP varchar(100),
 Tgt_prnt_CUSIP varchar(100),
 Tgt_Ultimate_CUSIP varchar(100),
 Tgt_CUSIP varchar(100),
 Acq_Primary_Ticker varchar(100),
 Acq_Ultimate_Ticker varchar(100),
 Tgt_Primary_Ticker varchar(100),
 Tgt_Ultimate_Ticker varchar(100),
 Acq_NAIC varchar(100),
 Acq_Ultimate_NAIC varchar(100),
 Tgt_Primary_NAIC varchar(100),
 Tgt_Ultimate_NAIC varchar(100),
 NBid varchar(100),
 Status varchar(100),
 Value_Est varchar(100),
 Value_Amended_Flag varchar(100),
 Date_Announced_Estimated varchar(100),
 Consideration_Structure varchar(100),
 NConsid_off varchar(100),
 NConsid_Sought varchar(100),
 Consid_Structure varchar(100),
 Pc_Cash varchar(100),
 Pc_Other varchar(100),
 Pc_Stock varchar(100),
 Pc_Unknown varchar(100),
 Acq_FullName varchar(100),
 Tgt_Name2 varchar(100),
 Acq_City varchar(100),
 Tgt_City varchar(100),
 Acq_Zip varchar(100),
 Tgt_Zip varchar(100),
 Acq_St varchar(100),
 Tgt_St varchar(100),
 Currency varchar(100),
 Tgt_Bankrupt varchar(100),
 Chlng_Deal varchar(100),
 Debt_Restructuring varchar(100),
 RecapDefense varchar(100),
 Government_Owned_Involvement_Flag varchar(100),
 Joint_Venture varchar(100),
 Restructuring varchar(100),
 Acq_LBO_firm varchar(100),
 LBO varchar(100),
 IPO_Flag varchar(100),
 Tgt_LBO_firm varchar(100),
 Merger_Equals varchar(100),
 Reverse_Takeover varchar(100),
 Deal_was_Rumor varchar(100),
 Acq_is_a_White_Knight varchar(100),
 White_Knight_Defense varchar(100),
 Back_End_Defense varchar(100),
 FlipOver_Defense varchar(100),
 Voting_Plan_Defense varchar(100),
 Poison_Pill varchar(100),
 Creeping_Acquisition varchar(100),
 Repurchase_Defense varchar(100),
 Pacman_Defense varchar(100),
 Lockup_FlagY_N varchar(100),
 Tgt_Lockup varchar(100),
 Greenmail varchar(100),
 Asset_Lockup varchar(100),
 Scorched_Earth_Defense varchar(100),
 SelfTender_Defense varchar(100),
 Stock_Lockup varchar(100),
 Defense varchar(100),
 White_Squire varchar(100),
 Acq_Includes_Employees varchar(100),
 Acq_Includes_an_ESOP varchar(100),
 Sig_Family_Ownership_Tgt varchar(100),
 Acq_Lockup varchar(100),
 Financial_Acq varchar(100),
 Step_Spinoff varchar(100),
 Acq_Includes_Mgmt varchar(100),
 Open_Market_Purchases varchar(100),
 Proxy_Fight varchar(100),
 Purpose_Code varchar(100),
 Related_Deals varchar(100),
 Foreign_Provider_Funds varchar(100),
 Stock_Swap varchar(100),
 Asset_Swap_Flag varchar(100),
 Sweep_the_Street varchar(100),
 SelfTender varchar(100),
 Tender_offer varchar(100),
 Unsolicited varchar(100),
 Acq_TermFee varchar(100),
 Tgt_TermFee varchar(100),
 Forced_vote_provisions_FlagY_N varchar(100),
 Walkaway varchar(100),
 Acq_Ultimate_Add1 varchar(100),
 Acq_Ultimate_Add2 varchar(100),
 Tgt_Ultimate_Add1 varchar(100),
 Tgt_Ultimate_Add2 varchar(100),
 Acq_stockEx varchar(100),
 Tgt_stockEx varchar(100),
 Tgt_Net_Sales varchar(100),
 Tgt_Net_Assets varchar(100),
 Tgt_Total_Assets varchar(100),
 Tgt_Common_Equity varchar(100),
 Tgt_BVpersh_LTMUS varchar(100),
 Tgt_IntangibleA varchar(100),
 Tgt_RD varchar(100),
 Tgt_Tot_liab varchar(100)
);

The column tgt_name seemed to have repeated twice in our data. To save time, I've just added 2 at the end of the column name for any such occurrence.

--COPY 52746

SDC Table with pairs of unique CUSIP and Announcement dates(Jake)

acq_cusip | acq_prnt_cusip | acq_ultimate_cusip

date_announced

Determine which of the cusips has the best coverage by checking for null values. All cusip variables have equal coverage. Picking acq_cusip.

Create a table with unique cusip (only first 6 digits) and announcement date values.

SELECT LEFT(acq_cusip, 6) AS acq_cusip, date_announced INTO cusip_announcedate FROM sdc GROUP BY 
 acq_cusip, date_announced;

 SELECT 49766

STATA Work

All Stata work found in the following folder:

E:\McNair\Projects\Winner's Curse\Stata

Code for most recent regression:

set more off

insheet using "Estimation.txt" log using "Estimation.log", replace

gen rmse=0 gen ressd=0 gen alpha=0 gen beta=0

tabstat acqkey, stats(min max) save matrix acqnos=r(StatTotal) local min=acqnos[1,1] local max=acqnos[2,1]

forvalues acqnumber = `min'(1)`max' { capture reg ret vret if acqkey==`acqnumber' capture matrix betas=e(b) capture local beta=betas[1,1] capture local alpha=betas[1,2] capture local rmse=e(rmse) capture predict res,r capture tabstat res, stats(sd) save capture matrix resmat=r(StatTotal) capture local ressd=resmat[1,1] capture replace rmse=`rmse' if acqkey==`acqnumber' capture replace ressd=`ressd' if acqkey==`acqnumber' capture replace alpha=`alpha' if acqkey==`acqnumber' capture replace beta=`beta' if acqkey==`acqnumber' capture drop res display `acqnumber' }

/* reg ret vret if acqkey==2 matrix betas=e(b) local beta=betas[1,1] local alpha=betas[1,2] local rmse=e(rmse) predict res,r tabstat res, stats(sd) save matrix resmat=r(StatTotal) local ressd=resmat[1,1] replace rmse=`rmse' if acqkey==2 replace ressd=`ressd' if acqkey==2 replace alpha=`alpha' if acqkey==2 replace beta=`beta' if acqkey==2 drop res

• /

drop if reldayno !=-30

outsheet using "Estimation-processed.txt", replace

Previous Papers

From the old wiki

• Old VC Acquisitions Paper
• Old VC Lit Review

Related Pages

• Governance Measures
• E-mail Chain on Winner's Curse
• Malmendier & Tate CEO Overconfidence

Resources

• SDC Platinum
• Venture Expert