Table A – Summary of Empirical Evidence on Industrial Diversification
Authors Sample Performance measurea Results Database
Lang & Stulz (1994)
1978-1990 Tobin's q -0.23 to -0.48 Compustat
Berger & Ofek (1995)
1986-1991 Excess value based on assets, sales & EBIT multipliers -13% to -15% Compustat
Servaes (1996) 1961-1976 Tobin's q -0.06 to -0.59 Compustat
Lins & Servaes (1999)
1992 & 1994 Excess value based on assets & sales multipliers -0% Germany 10% Japan 15% UK
Worldscope
Lins & Servaes (2002)
1995 Excess value based on assets & sales multipliers -7% emerging countries
Worldscope
Graham (2002) 1980-1995 Excess value based on assets & sales multipliers 5.7% to 6.6% SDC & Compustat
Campa & Kedia (2002)
1978-1996 Excess value based on assets & sales multipliers -11% to 30% Compustat
Villalonga (2004) 1978-1997 Excess value based on assets & sales multipliers and Tobin's q 8% to 34% Compustat
Mansi & Reeb (2002)
1988-1999 Excess value based on assets & sales multipliers 0% Worldscope
Villalonga (2004) 1989-1996 Tobin's q 0.28 BITS
Round 3: Industrial Diversification Creates Value Round 1: Industrial Diversification Destroys Value
Round 2: Industrial Diversification is Value Neutral
Source: Adapted from Villalonga (2003) and Mayo (2006)
Table B – Summary of Empirical Evidence on Geographic Diversification
Authors Sample Performance measure Diversification measure Results Control Variables
Errunza & Senbet (1981)
1968-1973 1974-1977
Excess market value of equity to sales 1. Fraction of total sales from abroad 2. Fraction of total earnings from abroad 3. Fraction of total net assets from abroad.
1. Positive 2. None 3. None
Total variability of stock returns amd industrial concentration.
Errunza & Senbet (1984)
1970-1978 Excess market value of equity to sales 1. Fraction of total sales from abroad 2. Absolute value of sales from abroad 3. Entropy measure 4. Number of foreign subsidiares
1. Positive 2. Positive 3. Positive 4. Negative
Systematic risk and price-earnings ratio.
Kim & Lyn (1986)
1974-1978 Tobin’s q 1. Fraction of total sales generated abroad 2. Number of foreign subsidiaries 3. Interaction of 1 versus 2
1. Positive 2. None 3. None
R&D/ sales, Advertising expenses/ sales,past sales growth rate and monopoly power.
Morck & Yeung (1991)
1978 Industry adjusted Tobin’s q 1. Number of foreign subsidiaries 2. Number of hosting countries of foreign sales
1. Positive 2. Negative 3. Positive
R&D/replacement cost of tangibles, Advertising expenses / replacement cost and leverage
Christophe (1997) 1978-1986 Tobin’s q Fraction of total sales generated abroad -6% R&D/assets. Advertising expenses/ assets. natural log of total assets, leverage, industrial div. measure Bodnar, Tang &
Weintrop (1998)
1987-1993 Industry adjusted excess value, based on median multiplier of focused domestic companies
Indicator variable for firms reporting more than 10 percent of their total sales from operations abroad.
2.5% R&D/sales, advertising expenses/ sales, leverage, diversification dummy and time dummies -18%
-32% Bodnar, Tang &
Weintrop (2003)
1984-1998 Industry adjusted excess value, based on median multiplier of focused domestic companies companies
Indicator variable for firms reporting more than 10 percent of their total sales from operations abroad.
1.4% R&D/sales, advertising expenses/ sales, leverage, EBIT/sales, relative firm size and diversification dummy
Dos Santos, Errunza & Miller (2003)
1990-1999 Industry adjusted excess value, based on median multiplier of focused domestic companies
Indicator variable denoting the international diversification status of the U.S. acquiring firms
24% Firm size, leverage, profitability, intangible assets and investment
Kim & Mathur (2007)
1990-1999 Industry adjusted excess value, based on median multiplier of focused domestic companies
Dummy variables for domestic/global,
focused/diversified and Herfindahl/Foreign sales as % total sales,
-5% Firm size, profitability, leverage, growth opportunity and capital expenditure
Relative R&D/sales, relative advertising expenses/sales, relative capital expenditures/sales, relative EBIT/sales, relative long-term debt to total capital and relative Denis, Denis &
Yost (2002)
1984-1997 Industry adjusted excess value, based on median multiplier of focused domestic companies
Fraction of total sales generated abroad
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
# of companies 64 67 70 71 83 94 97 106 106 113 124 127 129 131 120 56
# Ind. Diversified Companies 44 45 46 46 50 55 51 47 52 51 54 55 55 52 48 4
% Companies Ind. Diversified 68,8% 67,2% 65,7% 64,8% 60,2% 58,5% 52,6% 44,3% 49,1% 45,1% 43,5% 43,3% 42,6% 39,7% 40,0% -28,8%
Complete initial data set
# of segments Mean 2,031 2,000 1,971 1,972 1,976 1,830 1,773 1,642 1,755 1,673 1,613 1,638 1,651 1,603 1,542 -0,490 a % ∆ per year -1,5% -1,4% 0,0% 0,2% -7,4% -3,1% -7,4% 6,9% -4,7% -3,6% 1,5% 0,8% -2,9% -3,8% -24,1%
Median 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 -1 a
Maximum 5 5 5 5 5 4 4 4 5 4 4 6 6 6 4
Herfindahl Index (H) Mean 0,250 0,243 0,235 0,224 0,224 0,198 0,180 0,156 0,166 0,153 0,144 0,152 0,137 0,124 0,116 -0,134 a % ∆ per year -2,8% -3,4% -4,5% 0,1% -11,9% -9,0% -13,0% 5,9% -7,6% -5,9% 5,9% -9,9% -9,8% -6,7% -53,7% Median 0,156 0,215 0,196 0,140 0,082 0,069 0,040 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 -0,156 a
Entropy measure (E) Mean 0,404 0,389 0,375 0,357 0,368 0,318 0,290 0,249 0,269 0,245 0,228 0,228 0,213 0,200 0,184 -0,220 a % ∆ per year -3,9% -3,5% -4,7% 2,9% -13,6% -8,8% -14,2% 8,0% -8,7% -7,2% 0,0% -6,5% -6,0% -7,8% -54,4% Median 0,306 0,372 0,347 0,268 0,188 0,154 0,099 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 -0,306 a
Industrially diversified companies
# of segments Mean 2,500 2,489 2,478 2,500 2,620 2,418 2,471 2,447 2,538 2,490 2,407 2,473 2,527 2,519 2,354 -0,146 a % ∆ per year -0,4% -0,4% 0,9% 4,8% -7,7% 2,2% -1,0% 3,7% -1,9% -3,3% 2,7% 2,2% -0,3% -6,6% -5,8%
Median 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0
Maximum 5 5 5 5 5 4 4 4 5 4 4 6 6 6 4
Herfindahl Index (H) Mean 0,363 0,361 0,357 0,346 0,372 0,338 0,342 0,353 0,341 0,339 0,331 0,352 0,322 0,312 0,289 -0,074 % ∆ per year -0,5% -1,3% -3,2% 7,7% -9,3% 1,3% 3,1% -3,4% -0,5% -2,4% 6,5% -8,5% -3,2% -7,4% -20,5% Median 0,426 0,413 0,413 0,380 0,463 0,423 0,436 0,444 0,386 0,409 0,384 0,417 0,388 0,322 0,349 -0,076
Entropy measure (E) Mean 0,588 0,579 0,571 0,552 0,611 0,543 0,551 0,561 0,553 0,544 0,523 0,526 0,500 0,504 0,461 -0,127 c % ∆ per year -1,6% -1,4% -3,4% 10,7% -11,0% 1,5% 1,7% -1,4% -1,7% -3,8% 0,6% -5,0% 0,9% -8,6% -21,6% Median 0,645 0,612 0,617 0,626 0,664 0,620 0,645 0,675 0,624 0,619 0,578 0,617 0,599 0,503 0,536 -0,110
∆ over time 2006/1992 Table C - Descriptive statistics for Herfindahl Index and Entropy measure of industrial diversification for companies in initial data set per year 1992-2006
Note: Companies are classified as industrially diversified based on sales 2-digit SIC industry code. Single SIC reporting companies are considered focused and multiple SIC code reporting diversified. The sales based Herfindahl Index (H) is defined as H = (1- ∑Salesj)^2 and the Sales based Entropy measure (E) as E = ∑ Salesj x Ln (1/Salesj) where Salesj is the weight of the Sales in industry j. Changes in the mean per subsequent years are calculated and indicated as % ∆ per year and the summary for initial sample provides change for the complete 15 years (2006/2002)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
# of companies 65 69 73 76 80 84 83 89 98 103 110 113 111 111 107
# Geographically diversified companies 51 55 58 59 62 71 71 76 86 90 95 94 93 87 83
% Companies Geographically diversified 44,0% 44,4% 44,3% 43,7% 43,7% 45,8% 46,1% 46,1% 46,7% 46,6% 46,3% 45,4% 45,6% 43,9% 43,7% Complete initial data set
Geographic diversication GEODIV
Mean 0,441 0,457 0,474 0,463 0,471 0,518 0,527 0,527 0,542 0,523 0,513 0,513 0,512 0,487 0,474 % ∆ per year 3,5% 3,9% -2,4% 1,6% 10,2% 1,6% -0,1% 2,9% -3,4% -2,0% 0,0% -0,2% -4,9% -2,7% Median 0,510 0,500 0,530 0,500 0,520 0,575 0,580 0,570 0,550 0,550 0,575 0,560 0,570 0,560 0,520 Geographically diversified companies
Geographic diversication GEODIV
Mean 0,559 0,570 0,594 0,591 0,602 0,608 0,611 0,611 0,612 0,593 0,590 0,611 0,604 0,609 0,599 % ∆ per year 1,9% 4,2% -0,5% 1,8% 1,0% 0,5% 0,1% 0,1% -3,0% -0,6% 3,6% -1,2% 0,9% -1,7% Median 0,580 0,570 0,600 0,630 0,625 0,660 0,650 0,630 0,645 0,615 0,600 0,620 0,640 0,620 0,600 Note: We show descriptive statistics for global diversification amongst our sample throughout the years 1992-2007. Companies are classified as globally diversified based on the ratio of international sales to Total sales, with a threshold of 0.10.
60
Mean Median Std. Mean Median Std. Mean Median Std.
Herfindahl Index H 0,170 0,000 0,224 0,000 0,000 0,000 0,341 0,405 0,206 -0,341 a -0,405 a
Entropy measure E 0,271 0,000 0,352 0,000 0,000 0,000 0,543 0,612 0,316 -0,543 a -0,612 a
# of 2-digit SIC segments 1,211 1 1,108 0,533 1 0,499 2,482 2 0,764 -1,949 a -1,000 a
Geographic div. GEODIV 0,499 0,540 0,310 0,477 0,510 0,318 0,522 0,570 0,300 -0,044 c -0,060 c
Proxy for Tobin's q LNTQ 0,389 0,237 0,599 0,423 0,235 0,692 0,341 0,240 0,431 0,082 b -0,005 b
Profitability EBIT 0,004 0,070 3,211 -0,037 0,075 4,232 0,058 0,065 0,655 -0,095 a 0,010 b
Company size SIZE 12,773 12,725 2,483 12,297 12,226 2,482 13,478 13,221 2,313 -1,182 a -0,995 a
Growth opportunity 1 CAPEXS 0,184 0,034 1,023 0,270 0,034 1,322 0,065 0,033 0,223 0,205 a 0,001 a
Growth opportunity 2 CAPEXA 0,060 0,047 0,066 0,059 0,041 0,077 0,062 0,053 0,046 -0,003 a -0,012 a
Financial Leverage LEV 1,395 0,215 26,445 2,181 0,206 34,237 0,236 0,229 0,169 1,945 c -0,023 c
Difference (Focused - Diversified
Note: Company observations per year are classified as diversified based on sales 2-digit SIC industry code. Single SIC reporting companies are considered focused and multiple SIC code reporting diversified. The sales based Herfindahl Index (H) is defined as H = (1- ∑Salesj)^2 and the Sales based Entropy measure (E) as E = ∑ Salesj x Ln (1/Salesj) where Salesj is the weight of the Sales in industry j. Global diversification measure (GEODIV) is the ratio of international sales-to-total sales. Proxy for Tobin's q (LNTQ) is measured as (Total Assets + Book Value Equity + Market Value of Equity)/Total Assets. Profitability (EBIT) is the ratio of EBIT-to-Sales. Company size (SIZE) is natural logarithm of total assets. Growth opportunity 1 (CAPEXS) represent ratio Capital Expenditure to Sales and Growth opportunity 2 (CAPEXA) represents ratio Capital Expenditure to Assets. Financial LEverage (LEV) is the natural logarithm of the ratio of book value of total debt-to-total assets.
We assess the differences in means and median diversification, performance and control variables with Independent Samples T-test and Kruskal Wallis test statistic. a, b and c represent significance at the 0.01, 0.05 and 0.10 level respectively.
Mean Table E - Descriptive statistics on Industrial Diversification, Performance and Control Variables
Median
Mean Median Std. Mean Median Std. Mean Median Std.
Herfindahl Index H 0,170 0,000 0,224 0,144 0,000 0,205 0,205 0,067 0,235 -0,061 a -0,067 a
Entropy measure E 0,271 0,000 0,352 0,232 0,000 0,324 0,326 0,149 0,369 -0,094 a -0,149 a
# of 2-digit SIC segments 1,211 1,000 1,108 1,386 1,000 0,986 1,650 2,000 1,088 -0,264 a -1,000 a
Geographic div. GEODIV 0,499 0,540 0,310 0,029 0,000 0,035 0,599 0,620 0,244 -0,570 c -0,620 c
Proxy for Tobin's q LNTQ 0,389 0,237 0,599 0,436 0,334 0,558 0,359 0,262 0,441 0,078 b 0,072 b
Profitability EBIT 0,004 0,070 3,211 -0,833 0,049 8,270 0,101 0,067 0,298 -0,935 a -0,018 b
Company size SIZE 12,773 12,725 2,483 11,849 11,659 1,979 13,425 13,332 2,256 -1,575 a -1,672 a
Growth opportunity 1 CAPEXS 0,184 0,034 1,023 0,210 0,028 1,430 0,100 0,035 0,317 0,110 a -0,008 a
Growth opportunity 2 CAPEXA 0,060 0,047 0,066 0,063 0,048 0,073 0,060 0,050 0,052 0,003 a -0,003 a
Financial Leverage LEV 1,395 0,215 26,445 0,180 0,085 0,563 0,245 0,239 0,162 -0,065 c -0,155 c
We assess the differences in means and median diversification, performance and control variables with Independent Samples T-test and Kruskal Wallis test statistic. a, b and c represent significance at the 0.01, 0.05 and 0.10 level respectively.
Table F - Descriptive statistics on Geographic Diversification, Performance and Control Variables
Difference (Domestic - International)
Mean Median
Note: We show descriptive statistics for geographic diversification amongst our total sample, domestic companies and international companies. Companies are classified as geographically diversified based on the ratio of international sales to Total sales (GEODIV), with a threshold of 0.10.The sales based Herfindahl Index (H) is defined as H = (1- ∑Salesj)^2 and the Sales based Entropy measure (E) as E = ∑ Salesj x Ln (1/Salesj) where Salesj is the weight of the Sales in industry j. Proxy for Tobin's q (LNTQ) is measured as (Total Assets + Book Value Equity + Market Value of Equity)/Total Assets. Profitability (EBIT) is the ratio of EBIT-to-Sales. Company size (SIZE) is natural logarithm of total assets. Growth opportunity 1 (CAPEXS) represent ratio Capital Expenditure to Sales and Growth opportunity 2 (CAPEXA) represents ratio Capital Expenditure to Assets. Financial LEverage (LEV) is the natural logarithm of the ratio of book value of total debt-to-total assets.
62
Mean Median Std. Mean Median Std.
Herfindahl Index H 0,000 0,000 0,000 0,000 0,000 0,000
Entropy measure E 0,000 0,000 0,000 0,000 0,000 0,000
# of 2-digit SIC segments 0,741 1,000 0,439 0,755 1,000 0,431
Geographic div. GEODIV 0,021 0,000 0,030 0,598 0,625 0,241
Proxy for Tobin's q LNTQ 0,467 0,368 0,560 0,401 0,299 0,482
Profitability EBIT -1,376 0,055 10,858 0,124 0,071 0,413
Company size SIZE 11,724 11,430 2,195 12,974 12,806 2,091
Growth opportunity 1 CAPEXS 0,273 0,023 1,802 0,143 0,040 0,402
Growth opportunity 2 CAPEXA 0,055 0,033 0,082 0,062 0,050 0,060
Financial Leverage LEV 0,200 0,060 0,710 0,249 0,247 0,162
Herfindahl Index H 0,311 0,364 0,196 0,353 0,420 0,206
Entropy measure E 0,502 0,570 0,302 0,562 0,626 0,319
# of 2-digit SIC segments 2,394 2,000 0,722 2,510 2,000 0,795
Geographic div. GEODIV 0,041 0,040 0,038 0,600 0,620 0,247
Proxy for Tobin's q LNTQ 0,391 0,301 0,554 0,320 0,233 0,395
Profitability EBIT -0,123 0,044 1,814 0,080 0,066 0,114
Company size SIZE 12,045 12,136 1,576 13,857 13,578 2,326
Growth opportunity 1 CAPEXS 0,112 0,034 0,397 0,060 0,033 0,196
Growth opportunity 2 CAPEXA 0,077 0,069 0,053 0,059 0,051 0,044
Financial Leverage LEV 0,149 0,093 0,156 0,241 0,233 0,162
Domestic Companies International Companies
Table G - Descriptive statistics for all 4 matrix Industrially focussed and diversified versus Domestic and International companies
D iv e rs if ie d
Note: Matrix for descriptive statistics domestic/international companies versus focuse/diversified. Company observations per year are classified as diversified based on sales 2-digit SIC industry code. Single SIC reporting companies are considered focused and multiple SIC code reporting diversified.Companies are classified as geographically diversified based on the ratio of international sales to Total sales (GEODV), with a
threshold of 0.10.The sales based Herfindahl Index (H) is defined as H = (1- ∑Salesj)^2 and the Sales based Entropy measure (E) as E = ∑ Salesj x Ln (1/Salesj) where Salesj is the weight of the Sales in industry j. Proxy for Tobin's q (LNTQ) is measured as (Total Assets + Book Value Equity + Market Value of Equity)/Total Assets. Profitability (EBIT) is the ratio of EBIT-to-Sales. Company size (SIZE) is natural logarithm of total assets. Growth opportunity 1 (CAPEXS) represent ratio Capital Expenditure to Sales and Growth opportunity 2 (CAPEXA) represents ratio Capital Expenditure to Assets. Financial LEverage (LEV) is the natural logarithm of the ratio of book value of total debt-to-total assets.
LNTQ E H N GEODIV EBIT SIZE CAPEXS CAPEXA LEV 1 LNTQ 1762 -0,085a 1 E 0,001 1456 1503 -0,0834a 0,987a 1 H 0,001 0,000 1456 1503 1503 -0,079a 0,836a 0,795a 1 N 0,001 0,000 0,000 1762 1503 1503 2160 -0,053 0,023 0,020 0,055b 1 GEODIV 0,052 0,434 0,487 0,041 1329 1198 1198 1372 1372 -0,1145a 0,020 0,019 0,003 0,077a 1 EBIT 0,000 0,457 0,469 0,908 0,005 1622 1419 1419 1713 1325 1713 -0,235a 0,127a 0,112a 0,309a 0,269a 0,056b 1 SIZE 0,000 0,000 0,000 0,000 0,000 0,020 1762 1503 1503 1861 1372 1712 1861 -0,019 -0,105a -0,10a -0,0812a -0,055b -0,453a -0,023 1 CAPEXS 0,436 0,000 0,000 0,001 0,044 0,000 0,337 1680 1463 1463 1770 1365 1681 1769 1770 0,001 0,040 0,040 0,006 -0,026 -0,008 -0,069a 0,452a 1 CAPEXA 0,966 0,121 0,121 0,796 0,346 0,753 0,003 0,000 1721 1474 1474 1810 1365 1680 1810 1769 1810 0,500a -0,022 -0,012 -0,058b 0,132a 0,011 -0,196a 0,111a -0,039 1 LEV 0,000 0,400 0,647 0,013 0,000 0,653 0,000 0,000 0,095 1762 1503 1503 1859 1372 1712 1859 1769 1810 1859
We assess correlations amongst independent variables with Pearson Correlation (2-tailed) where:
a = Correlation is significant at the 0.01 level b = Correlation is significant at the 0.05 level
Table H - Correlations amongst Independent Variables
Note: Correlation amongst independent variables. The pearson correlation is given first, underneath the significance and row 3 provides number observations used. LNTQ represent natural logarithm of proxy for Tobin's q. The sales based Herfindahl Index (H) is defined as H = (1-∑Salesj)^2 and the Sales based Entropy measure (E) as E = ∑ Salesj x Ln (1/Salesj) where Salesj is the weight of the Sales in industry j. N is the number of industrial segments per company per year. The ratio of
Graph A – Distribution of proxy for Tobin’s q Tobinsq 25,00 20,00 15,00 10,00 5,00 0,00 F re q u e n c y 600 400 200 0
Graph B - Approximation to the normal distribution of proxy for LN Tobin’s q
UK STANDARD INDUSTRIAL CLASSIFICATION OF ECONOMIC
ACTIVITIES (SIC80)
The Standard Industrial Classification (SIC) is broken down into 4 areas; the divisions, the classes, the groups and the activity units. At the most detailed level the units are distinguished with a 4 digit classification. Each unit is allocated to a group (3 digits). Each group is allocated to a class (2 digits) and each class allocated to a division (1 digit).
Of the four digit activity units the first digit denotes the division the unit is contained within. The first 2 digits denote the class and the first 3 digits denote the group classification.
SIC 80 codes INDUSTRY
01 Agriculture & horticulture
02 Forestry
03 Fishing
11 Coal extraction & manufacture of solid fuels
12 Coke ovens
13 Extraction of mineral oil & natural gas
14 Mineral oil processing
15 Nuclear fuel production
16 Production & distribution of electricity, gas & other forms of energy
17 Water supply industry
21 Extraction & preparation of metalliferous ores
22 Metal manufacturing
23 Extraction of minerals not elsewhere specified 24 Manufacture of non-metallic mineral products
25 Chemical industry
26 Production of man-made fibres
31 Manufacture of metal goods not elsewhere specified
32 Mechanical engineering
33 Manufacture of office machinery & data processing equipment 34 Electrical & electronic engineering
35 Manufacture of motor vehicles & parts thereof 36 Manufacture of other transport equipment
37 Instrument engineering
41/42 Food, drink & tobacco manufacturing industries
43 Textile industry
44 Manufacture of leather & leather goods 45 Footwear & clothing industries
46 Timber & wooden furniture industries
47 Manufacture of paper & paper products; printing & publishing 48 Processing of rubber & plastics
49 Other manufacturing industries
50 Construction
61 Wholesale distribution (except dealing in scrap & waste materials) 62 Dealing in scrap & waste materials
63 Commission agents
64/65 Retail distribution
66 Hotels & catering
71 Railways
72 Other inland transport
74 Sea transport
75 Air transport
76 Supporting services to transport
77 Miscellaneous transport services & storage 79 Postal services & telecommunications
81 Banking & finance
82 Insurance, except for compulsory social security
83 Business services
84 Renting of movables
85 Owning & dealing in real estate
91 Public administration, national defence & compulsory social security
92 Sanitary services
93 Education
94 Research & development
95 Medical & other health services; veterinary services 96 Other services provided to the general public
97 Recreational services & other cultural services
98 Personal services
99 Domestic services
00 Diplomatic representation, international organisations, allied armed forces
Source: http://www.statistics.gov.uk
CODES AND DESCRIPTIONS FOR DATA
COLLECTION FROM WORLDSCOPE
Code: 03995
Name: Total shareholder's equity
Description: Total shareholders equity represents the sum of Preferred Stock and Common Shareholders Equity. This item is available in the annual time series and the quarterly, semi-annual and trimester interim time series. It is only available at the company level.
Code: 03501
Name: Market value of equity
Description: Market value of equity represents common shareholders' investment in a company. It includes but is not restricted to: Common stock value, Retained earnings, Capital surplus, Capital stock premium, Cumulative gain or loss of foreign currency translation, if included in equity per FASB 52 treatment, Monetary correction-capital (03482), Goodwill written off (03491)
Code: 03255 Name: Total debt
Description: Total debt represents all interest bearing and capitalized lease obligations. It is the sum of long and short term debt.
Code: 03451
Name: Preferred stock
Description: Preferred stock represents a claim prior to the common shareholders on the earnings of a company and on the assets in the event of liquidation.
Preferred stock of subsidiary and premium on preferred stock is included in preferred stock. It excludes minority interest in preferred stock.
For Non-U.S. Corporations, the stated value of preferred stock is shown and it includes all preferred stock related accounts.
For Non-U.S. Corporations preference stock which participates with the
common/ordinary shares in the profits of the company is included in common equity. It includes but is not restricted to: Redeemable preferred stock (18290) and
Non-redeemable preferred stock (18289)
Code: 03480
Name: Common stock
Description: Common Stock represents the par or stated value of the issued common shares of the company. It includes the value of all multiple shares. Along with capital surplus it is the equity capital received from parties outside the company. It excludes excess involuntary liquidation value of preferred stock over stated value when common stock value and capital surplus are reported combined. Data for this field is generally not available prior to 1989.
Code: 03351
Name: Total liabilities
It includes but is not restricted to: Current Liabilities, Long Term Debt, Provision for Risk and Charges (non-U.S. corporations), Deferred taxes, Deferred income, Other liabilities, Deferred tax liability in untaxed reserves (non-U.S. corporations), Unrealized gain/loss on marketable securities
(insurance companies), Pension/Post retirement benefits, Securities purchased under resale agreements (banks) and excludes: Minority Interest, Preferred stock equity, Common stock equity and Non-Equity reserves
Code: 05491
Name: Book value outstanding shares
Description: Book value of outstanding shares represents the book value (proportioned common equity divided by outstanding shares) at the company?s fiscal year end.
Code: 05301
Name: Common shares outstanding
Description: Common shares outstanding represent the number of shares outstanding at the company's year end. It is the difference between issued shares and treasury shares. For companies with more than one type of common/ordinary share, common shares outstanding represents the combined shares adjusted.
Code: 05001
Name: Market price – year end
Description: Market price – year end represents the closing price of the company's stock at December 31 for U.S. Corporations. For non-U.S. corporations, this item represents the closing price of the company's stock at their fiscal year end.
Code: 19506, 19516, 19526, … 19596
Name: Product segment 1, 2, 3, …10 SIC code
Description: The following information is given for up to ten product segments of a
company. If a company has only one product line data is updated to the product segment 1 fields. If a company has more than ten product segments the
remaining segments are included with the Product Segment 10 data.
SIC CODES represents the Standard Industry Classification of the product line updated in the respective description.
Data for these fields are generally not available prior to 1990.
Code: 19501, 19511, 19521, ….. 19591 Name: Product segment 1, 2, 3 … 10 sales
Description: The following information is given for up to ten product segments of a
company. If a company has only one product line data is updated to the product segment 1 fields. If a company has more than ten product segments the
remaining segments are included with the Product Segment 10 data. Sales represents the total revenues from the product line updated in the respective description.
Code: 19601
Name: Geographic segment data 1 sales
Geographic Segment 10 fields. Data for these fields are generally not available prior to 1990.
Sales represents the total revenues from the geographic region updated in the respective description.
Code: 19600, 19610, 19620, ….. 19691 Name: Geographic segment data 1
Description: Geographic segment data represents the geographic region as reported by the company. The following information is given for up to ten geographic segments of a company. For companies that have only domestic operations data is found in Geographic Segment 1 fields. If a company has more than ten geographic segments the remaining segments are included in Geographic Segment 10 fields.
Data for these fields are generally not available prior to 1990.
Code: 01001
Name: Net sales or revenues
Description: Net sales or revenues represent gross sales and other operating revenue less discounts, returns and allowances.
Code: 18191
Name: Earnings before interest and taxes (EBIT)
Description: EBIT represent the earnings of a company before interest expense and income taxes. It is calculated by taking the pretax income and adding back interest expense on debt and subtracting interest capitalized.
Code: 04601
Name: Capital expenditures (additions to fixed assets)
Description: Capital expenditures represent the funds used to acquire fixed assets other than those associated with acquisitions. It includes but is not restricted to: Additions to property, plant and equipment and Investments in machinery and equipment
Code: 08421
Name: Capital expenditures % sales
Description: Capital Expenditures / Net Sales or Revenues * 100
Code: 02999 Name: Total assets
Description: Total assets represent the sum of total current assets, long term receivables, investment in unconsolidated subsidiaries, other investments, net property plant and equipment and other assets.
Code: 18100
Name: Enterprise value
Description: Market Capitalization at fiscal year end date+ Preferred Stock + Minority Interest + Total Debt minus cash. Cash represents Cash & Due from Banks for Banks, Cash for Insurance Companies and Cash & Short Term Investments for all other industries.
Code: 07101
Name: International sales
Description: International sales represent sales generated from operations in foreign
countries. It excludes: Export sales, Excise taxes, Windfall profit taxes, Value Added taxes (VAT) and General and Services taxes (GST)
Code: 08001
Name: Market Capitalization
Description: Market Price-Year End * Common Shares Outstanding
