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Winner's Curse in Acquisitions (Academic Paper) (view source)
Revision as of 19:14, 15 November 2016
, 19:14, 15 November 2016→Governance_Final Table (Amir)
Text file is saved in:
E:\McNair\Projects\Winner's Curse\Governance\RiskMetrics-0b578b37fbb59afa.txt
Good to know:
Calculating the Gindex in RiskMetrics after 2007
Riskmetrics made significant changes to their data sources and methodology starting in 2007. As a result, many of the inputs needed to calculate the Gindex are no longer available. You can check the website of or contact ...
Best Identifier to Use in RiskMetrics Directors- Changes to Identifier between Legacy and Current Files
1. The primary identifier in the current dataset is year-ticker-director_detail_id. Ticker is better populated than cusip in earlier years, but should be about the same in the latest years. For the legacy directors, director_detail_id was in use for some years and legacy_director_id for others.
2. Cusips in the legacy file are "header". With each update, WRDS modified all previous cusips for a company to match the latest. Although it may help in some cases, it may hurt in others and it is not quite the way the data was delivered. Starting with the new directors file, Cusips appear in the file as they were delivered (effectively making them historical going forward). Cusips in the legacy data were also uniformly truncated to 6 digits for consistency. The new file reports them as they are delivered, typically (but not always) 9 digits.
3. Tickers were not changed over time and appear as they were delivered. One example is legacy company id (legacy_pps_id) 25 has tickers ASN and IKN.
4. Each time IRRC - ISS - Riskmetrics was acquired, new identification methods were introduced. This is why you see legacy company and director IDs. Neither is more correct, we recommend choosing the most populated one for the years in which you are working.
5. Constructing a complete time series in the directors data is not easy. There is no single variable that is populated for all companies and all years.
6. Be very careful when combining the legacy data (through 2006) and the current data (from 2007). They were separated because the collection methods and meaning of some variables changed.
==Paper Discussion==
