* These new industry classifications are based on firm
pairwise similarity scores from text analysis of firm 10K product
descriptions. Competitors are firm centric with each firm having its own
distinct set of competitors - analogous to networks or a
"Facebook" circle of friends. These new industry classifications are
updated annually and offer more research flexibility, and are also more
informative, than FIC (fixed industry) classifications such as SIC, NAICS,
and the 10-K based FIC classifications below. Our research shows they
sharply improve upon SIC and NAICS codes in explaining many different firm
specific decisions, including firm profitability, Tobins
Q and dividends. These benefits are outlined in Hoberg and Phillips (2010,
2016), with references available by clicking on above link.
* HHI Concentration metrics and Total Similarity data is
available based on TNIC Industries.
Market Fluidity data assesses the degree of competitive threat and product
market change surrounding a firm, and is based on Hoberg, Phillips and
TNIC data is comprised of two key databases, and is based on Fresard,
Hoberg, and Phillips (2019 forthcoming). The first is a firm-year panel indicating the extent to which firms
are vertically integrated. The
second is a firm-pair-year database indicating the potential for vertical
relatedness for every pair of firms in every year.
Papers that develop and use
Scale and Competition: The 21st Century Firm. [Download Paper]
Gerard Hoberg and Gordon Phillips, working paper.
Network Industries and Endogenous Product Differentiation. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2016, Journal of Political Economy 124 (5), 1423-1465.
Market Synergies and Competition in Mergers and Acquisitions: A Text-Based
Analysis. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2010, Review of Financial Studies 23 (10), 3773-3811.
Real and Financial Industry Booms and Busts. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2010, Journal of Finance 65 (1), 45-86.
Product Market Threats, Payouts, and Financial Flexibility [Download Paper]
Gerard Hoberg, Gordon Phillips and Nagpurnanand Prabhala, 2014, Journal of Finance 69 (1), 293-324.
Activities and Integration through Vertical Acquisitions [Download Paper]
Laurent Fresard, Gerard Hoberg, and Gordon Phillips, 2019, Review of Financial Studies
Industry Choice and Product Language [Download Paper]
Gerard Hoberg and Gordon Phillips, 2018, Management Science 64 (8), 3735-3755..
Industry Momentum [Download Paper]
Gerard Hoberg and Gordon Phillips, 2019, Journal of Financial and Quantitative Analysis, forthcoming
Product Integration and Merger Success [Download Paper]
Gerard Hoberg and Gordon Phillips, 2018, Working Paper.