A Comparison of Industry Classification Schemes: A Large Sample Study

Posted: 30 Aug 2012 Last revised: 16 Oct 2012

See all articles by Karel Hrazdil

Karel Hrazdil

Simon Fraser University

Kim Trottier

Simon Fraser University

Ray Zhang

Simon Fraser University - Beedie School of Business

Date Written: October 15, 2012

Abstract

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

Suggested Citation

Hrazdil, Karel and Trottier, Kim and Zhang, Ray, A Comparison of Industry Classification Schemes: A Large Sample Study (October 15, 2012). Economics Letters, Vol. 118, No. 1, pp. 77-80, 2013, Available at SSRN: https://ssrn.com/abstract=2138603 or http://dx.doi.org/10.2139/ssrn.2138603

Karel Hrazdil (Contact Author)

Simon Fraser University ( email )

Faculty of Business Administration
8888 University Drive, Simon Fraser University
Burnaby, British Colombia V5A 1S6
Canada
778-782-6790 (Phone)
778-782-4920 (Fax)

HOME PAGE: http://www.sfubusiness.ca

Kim Trottier

Simon Fraser University ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

HOME PAGE: http://business.sfu.ca/profiles/KimTrottier

Ray Zhang

Simon Fraser University - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

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