The Fresard, Hoberg and Phillips vertical textual network industry relatedness classification (VTNIC) is based on the text explaining the commodities in the BEA input-output tables alongside the text firms use to describe their businesses and product offerings in annual public-firm 10-K disclosures. The VTNIC is identified at the individual firm level and firm pair-wise level by assessing the overlap between firmsí product descriptions and the actual product words and descriptions used by the BEA in their input-output tables (these descriptions facilitate firms reporting the products they produce to the BEA).

The VTNIC database is best described through its two parts (two files). The first (file1) is a firm-year panel database containing information about each firmís own vertical integration.This is based on assessing the extent to which each firmís product vocabularies are vertically related to other product vocabularies used by the same firm.The second (file2) is a dynamic firm-pair-year network summarizing the potential for vertical relatedness between firm pairs.††† Because the data is not based on any information about observed flows of goods, but rather is based on BEA vocabularies known to be vertically related, the data in file 2 (pairwise scores) is best interpreted as measuring the potential for vertical relatedness for firm pairs rather than the actual vertical trade flows between specific firm pairs.

Welcome to the Fresard-Hoberg-Phillips Vertical Relatedness Data Library

<< Note: Vertical Relatedness Data Extended through 2017! >>

Data provided

by Laurent Fresard (Universita della Svizzera italiana (USI), Swiss Finance Institute),

Gerard Hoberg (University of Southern California),

and Gordon Phillips (Dartmouth College)


 

* Please cite the following paper when using this data.Details regarding the creation and use of this data are documented in the paper.

Innovation Activities and Integration through Vertical Acquisitions,

2019, Review of Financial Studies, forthcoming [Download Paper]

 


Vertical Integration Data (vertical integration for each firm in each year):

Readme file [click here]

Text-Based Vertical Integration Data [click here to download]

* The extent of vertical integration is identified at the individual firm level by identifying the overlap between firmís product descriptions and the actual product

words and descriptions of products that the BEA provides as part of their input-output tables to allow firms to report the products they produce to the BEA.

** Please review all details in the readme file before using the database.


Pairwise Vertical Relatedness Network:Basic 10% Granularity Version

Readme file [click here]

Vertical TNIC data (basic 10% granularity) [click here to download]

* The above basic version includes the 10% of all firm pairs with highest potential for vertical relatedness.

** Please review all details in the readme file before using the database.


Pairwise Vertical Relatedness Network:Full Granularity

Readme file [click here]

Vertical TNIC data (full granularity) [click here to download]

* The above is a very large database containing all relatedness scores for all firm pairs in our sample in every year, including pairs with very little or no potential for vertical relatedness.

** Please review all details in the readme file before using the database.


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