| edoc-Server der Humboldt-Universität zu Berlin |
| Autor(en): | Christian Weiner | Titel: | The Impact of Industry Classification Schemes on Financial Research |
| Erscheinungsdatum: | 20.12.2005 |
| Erschienen in: |
Sonderforschungsbereich 649: Ökonomisches Risiko 62 (SFB 649 Papers) ISSN: 1860-5664 |
| Volltext: | pdf (urn:nbn:de:kobv:11-10057507) |
| Fachgebiet(e): | Wirtschaft |
| Schlagwörter (eng): | industry classification |
| Herausgeber: | Humboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät |
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| Abstract (eng): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| This paper investigates industry classification systems. During the last 50 yearsthere has been a considerable discussion of problems regarding the classification ofeconomic data by industries. From my perspective, the central point of each classificationis to determine a balance between aggregation of similar firms and differentiationbetween industries. This paper examines the structure and content ofindustrial classification schemes and how they affect financial research. I use classificationsystems provided by the Worldscope and the Compustat database. First,this study gives a detailed description of the structure and methodology of industrialclassification systems and the relevance in leading finance and accounting journals.Second, I construct a benchmark classification system to measure the performanceof different systems and provide evidence that some systems a more homogeneousin terms of value drivers than others. Third, I examine how multiple valuation isinfluenced by industry classification and show that the results vary significantly fordifferent systems. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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