DATA Summary

SDC

Start from 1029 (1062 duplicate) spinoffs.


Level a, Merge by parent CUSIP and time 

• No match, 382 obs
• a1: 1 match, 622 obs
• a2: >1 match, 59 obs (=>26 obs)

Level b, Start from level a, no match (382 obs)

Loose condition: no requirement for time period match

• Still no match, 235 obs
• b1: 1 match, 46 obs
• b2: >1 match, 404 duplicate obs (=> 100 obs)

Level c, Start from level b, no match (235 obs)

Use Immediate Parent Cusip, no requirement for time period

• Still no match, 219 obs
• c1: 1 match, 7 obs
• c2: >1 match, 45 duplicate obs (=> 9 obs)

Level d, Start from level c, no match (219 obs)

• d0: Still no match, 183 obs
• d1: 1 match, 8 obs
• d2: >1 match, 152 duplicate obs (=> 28 obs)

Manually check d0

Out of 183 obs, I find 21 spinoffs by Google search and get useful Permnos.

The reason for a2 duplicates:

1. Dual classes
2. Tracking stock.

The reason for b1:

1. Merge, Acquisitions, Spinoff occur at the same time. Hence, SDC gives wrong CUSIP. (SDC has a lot of observations with same CUSIPs for parents and subs.) [10 obs]

Totally 140 same parent and sub CUSIPs.

2. OTC, Private, Foreign, and Not found

[11 obs]

3. Others

The reason for b2 duplicates (100):

1. Wrong CUSIPs: 29 obs

2. OTC, Private, Not Found: 20 obs

c. CUSIPs change: 44 obs

The reason for d2 duplicates (28):

1. OTC, Private, Foreign, Not Found: 19 obs

2. CUSIPs change