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Isabelle, Roland ; John, van Reenen ; John, van Reenen ; Timothy J, Besley ; Timothy, Besley. (2020) The Aggregate Consequences of Default Risk: Evidence from Firm-level Data.
In: CEPR Discussion Papers. RePEc:cpr:ceprdp:14327.
Full description at Econpapers
cites:
The UK Data Service was able to match 2,372,326 CRNs to an entref, representing 12,282,574 entref-year observations. From these, we drop observations with consolidation code C2 (consolidated accounts of a companyheadquarter that also has unconsolidated accounts) to avoid double counting as in Kalemli-Ozcan et al (2015) (81,354 matches). Although the majority of CRNs are matched to a single entref (and hence risk score), some CRNs are matched to the same enterprise reference number. This creates 463,726 entref-year duplicates. For these entrefs, we compute a weighted average risk score using weights based on the total assets of the individual CRNs that belong to the entref. Duplicate groups with insufficient data on total assets to calculate the weights are dropped entirely. We also sum up accounting items (e.g. total assets) at the entref level for those entrefs with multiple CRNs.
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