Winner's Curse in Acquisitions (Academic Paper)

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McNair Project
Winner's Curse in Acquisitions (Academic Paper)
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Mini task 1, SDC Data Pull, preferably Jake

Pull the following list of variables: 1985 to present. If you think there should be another variable included feel free to add them to the following list. Import them into a SQL table. Make sure to document every step including the SQL codes. If possible save the data pull session.

    • CUSIP
    • Exchange and ticker
    • Company name
    • Acq transaction value
    • Acq announcement date
    • Number of bidders
    • NAICS codes for target and Acq.
    • Addresses

Mini task 2, COMPUSTAT and CRSP Data Pull, preferably Will

The same as task 1 for the following variables.

  • Variables for CRISP(daily)
    • Stock price
    • Returns
  • Variable for COMPUSTAT ( Everything 1980 to present)
    • Acq market value of assets
    • NAICS codes
    • Sales
    • GVKEY
    • intangible assets
    • TOBIN's Q

Mini task 3, 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

  • Including public acquisitions
  • Find SIC codes for the old data, also for the public firms that are now included.
  • Data from SDC
    • Social criteria acquisitions announcement dates 1985 - present
    • Acquirer publicly traded ( must be AMEX, NASDAQ, or NYSE)
    • Target status is public or private
    • Acquirer and target are U.S. firms.
    • Acq of 100 percent of the firm and Acq. completed
    • GVKEY
  • Variable list for SDC
    • CUSIP
    • Exchange and ticker
    • Company name
    • Acq transaction value
    • Acq announcement date
    • Number of bidders
    • NAICS codes for target and Acq.
    • Addresses
    • T
  • Variables for CRISP(daily)
    • Stock price
    • Returns
  • Variable for COMPUSTAT ( Everything 1980 to present)
    • Acq market value of assets
    • NAICS codes
    • Sales
    • GVKEY
    • intangible assets
    • TOBIN's Q


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. See page 9 of the paper for data processing notes. FROM

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 CRISP data into the `winner' database (Amir)

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

List of variables in the CRSP-oct10.txt

  • PERMNO
  • date
  • EXCHCD
  • SICCD

NCUSIP TICKER COMNAM NAICS PRIMEXCH PERMCO CUSIP PRC VOL RET SHR OUT NUMTRD vwretdPE ewretd


Previous Papers

From the old wiki

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