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The Effect of Leverage Buyouts on Innovation (view source)
Revision as of 12:25, 4 July 2019
, 12:25, 4 July 2019→Code
*561 Alliance Imaging Inc acquired by Apollo 1997-07-15
*476 Petco Animal Supplies Inc_2 2006-10-26
===Data Issues===
We are losing a lot of LBOs because of the exchange code restriction:
SELECT exchg, count(*) FROM (
SELECT CSwNAICS.gvkey, max(exchg) as exchg FROM CSwNAICS
JOIN LBOvalid ON LBOvalid.gvkey=CSwNAICS.gvkey
GROUP BY CSwNAICS.gvkey
) AS T GROUP BY exchg ORDER BY COUNT(*) DESC;
exchg count
11 148 NYSE
14 142 NASDAQ
1 41 Priv (Can)
3 36 LBO!
0 35 Sub/Priv
12 35 Amex
19 24 Philly
13 22 OTC
7 1 Toronto
20 1 Unlisted Evaluated Equity
Our valid exchange codes are 11, 12, 14. The COMPUSTAT lookup table is below:
Stock Exchange Code
Variable Name = EXCHG
This item identifies the major exchange on which the company's Common/Ordinary Stock (Capital) is traded. Below are some of the common exchange codes. A complete list is available in the Compustat manual.
Code Description Exchange Country
0 Subsidiary/Private Canada
0 Subsidiary/Private United States
1 Non-traded Company or Security Canada
1 Non-traded Company or Security Germany
1 Non-traded Company or Security Switzerland
1 Non-traded Company or Security Taiwan
1 Non-traded Company or Security United States
2 Consolidated Parent or Tracking Stock Company United States
3 Leveraged Buyout United States
4 Additional Company Record-PreSFAS 94, ProForma, PreAmended United States
7 Toronto Canada
8 Montreal Stock Exchange Canada
9 Canadian Venture Exchange Canada
10 Alberta Stock Exchange Canada
11 New York Stock Exchange United States
12 American Stock Exchange United States
13 OTC Bulletin Board United States
14 NASDAQ-NMS Stock Market United States
15 Boston Stock Exchange United States
16 Midwest Exchange (Chicago) United States
17 Pacific Exchange United States
18 Philadelphia Exchange United States
19 Other-OTC United States
20 Unlisted Evaluated Equity United States
The problem seems to be that the exchange code is not temporal - it doesn't change over time, instead it is just a single fixed value for the entire COMPUSTAT record. Loc (i.e. country code) is also not temporal. Almost all of our LBOs are in the U.S.:
loc count
USA 482
CAN 3
I am therefore going to restrict on being U.S. (which will cost us 3 LBOs) but not on exchange. In STATA we restrict on assets, and I'm going to '''trust Brian''' that these are all publicly traded firms undergoing LBOs. For the controls, we are just going to have to hope as well...
by gvkey: egen assetfilter = max(at >= 40 & at != .)
===Code===
