The Limitations of Industry Concentration Measures Constructed with Compustat Data: Implications for Finance Research

By Ashiq Ali. 2009

431 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/7ee65fecf3d6854982ff2a30bbc2cf21b0f22fd3

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Citations in the corpus

Product Market Competition, Corporate Governance, and Firm Value: Evidence from the EU Area (2011, neutral): “Ali et al. (2009), however, argue that competition measures calculated exclusively with Compustat data, and thereby only covering the public firms within an industry, are poor proxies for actual competition.”
Product market competition and conditional conservatism (2014, neutral): “A criticism of this measure is that it does not consider private firms in a given industry (Ali et al. 2009). In fact, industry concentration measures using U.S. Census Bureau data, which covers both private and public firms, are weakly correlated (13 %) to the industry concentration measures based ”
Are US Industries Becoming More Concentrated (2019, positive): “Since Ali, Klasa, and Yeung (2009) demonstrate that Compustat and Census-based concentration ratios have low correlation and may lead to opposite conclusions, we want to ensure that the increase in concentration is not sensitive to the choice of concentration measure.”
Examining the influence of service additions on manufacturing firms' bankruptcy likelihood (2017, methodology): “In this way, we could ensure that our dataset contained no missing values (LOGIT requires complete case analysis) and we could also reliably use the Compustat database for industry-level data (Ali et al., 2009).”
Client importance and audit partner independence (2012, background): “Even in the sample period from 2001 to 2004, which Chen et al. (2010) characterize as an 5 Ali et al. (2009) suggest the importance of including private (unlisted) firms in another context.”
Redacting Proprietary Information at the Initial Public Offering (2015, background): “Ali, Klasa, and Yeung (2009) speculate that the mixed evidence could stem from problems with traditional measures of competition.”
Corporate Suppliers and Customers and Accounting Conservatism (2012, methodology): “10 Ali et al. (2009) show that when using U.”