Advanced Search
MyIDEAS: Login

The importance of industry classification in estimating concentration ratios

Contents:

Author Info

  • Hrazdil, Karel
  • Zhang, Ray
Registered author(s):

    Abstract

    We compare different industry concentration ratios based on the Standard Industry Classification (SIC) system to ratios based on the Global Industry Classification Standard (GICS) system and demonstrate through the analysis of industry markups that GICS-based measures are better proxies for the actual industry concentration than SIC-based measures.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S016517651100379X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 114 (2012)
    Issue (Month): 2 ()
    Pages: 224-227

    as in new window
    Handle: RePEc:eee:ecolet:v:114:y:2012:i:2:p:224-227

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Industry; Concentration; Markup; SIC; GICS;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Kahle, Kathleen M. & Walkling, Ralph A., 1996. "The Impact of Industry Classifications on Financial Research," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 31(03), pages 309-335, September.
    2. Heather E. Tookes, 2008. "Information, Trading, and Product Market Interactions: Cross-sectional Implications of Informed Trading," Journal of Finance, American Finance Association, vol. 63(1), pages 379-413, 02.
    3. Hennessy, David A. & Lapan, Harvey, 2007. "When different market concentration indices agree," Economics Letters, Elsevier, vol. 95(2), pages 234-240, May.
    4. Kathleen M. Kahle & Ralph A. Walkling, . "The Impact of Industry Classifications on Financial Research," Research in Financial Economics 9607, Ohio State University.
    5. DeFond, Mark L. & Park, Chul W., 1999. "The effect of competition on CEO turnover1," Journal of Accounting and Economics, Elsevier, vol. 27(1), pages 35-56, February.
    6. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: An Inverted-U Relationship," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 701-728, May.
    7. Sanjeev Bhojraj & Charles M. C. Lee & Derek K. Oler, 2003. "What's My Line? A Comparison of Industry Classification Schemes for Capital Market Research," Journal of Accounting Research, Wiley Blackwell, vol. 41(5), pages 745-774, December.
    8. Ashiq Ali & Sandy Klasa & Eric Yeung, 2009. "The Limitations of Industry Concentration Measures Constructed with Compustat Data: Implications for Finance Research," Review of Financial Studies, Society for Financial Studies, vol. 22(10), pages 3839-3871, October.
    9. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
    10. Kewei Hou & David T. Robinson, 2006. "Industry Concentration and Average Stock Returns," Journal of Finance, American Finance Association, vol. 61(4), pages 1927-1956, 08.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Hrazdil, Karel & Trottier, Kim & Zhang, Ray, 2013. "A comparison of industry classification schemes: A large sample study," Economics Letters, Elsevier, vol. 118(1), pages 77-80.
    2. Karel Hrazdil & Thomas Scott, 2013. "The role of industry classification in estimating discretionary accruals," Review of Quantitative Finance and Accounting, Springer, vol. 40(1), pages 15-39, January.
    3. Lis-Gutiérrez, Jenny-Paola, 2013. "Medidas de concentración y estabilidad de mercado. Una aplicación para Excel
      [Market concentration and market stability measures. An application for Excel]
      ," MPRA Paper 47615, University Library of Munich, Germany.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:114:y:2012:i:2:p:224-227. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.