A Comparison of Industry Classification Schemes: A Large Sample Study
Posted: 30 Aug 2012 Last revised: 16 Oct 2012
Date Written: October 15, 2012
In a large sample setting, we compare four broadly available industry classification schemes in their effectiveness to group stocks with similar operating characteristics. We demonstrate the advantage of the Global Industry Classification Scheme to be consistent across different application schemes common to capital market research and across different groups of firms.
Keywords: Industry classification, homogeneity, performance, SIC, NAICS, FF, GICS
JEL Classification: C15, G1
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