Do Conglomerate Firms Allocate Resources Inefficiently Across Industries ? Theory And Evidence  

Oleh:

Maksimovic, Vojislav ; Phillips, Gordon

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Journal of Finance (EBSCO) vol. 57 no. 2 (2002), page 721-768.
Topik: FIRMS; studies; economic models; conglomerates; resource allocation; profit maximization; efficiency
Fulltext: p 721.pdf (346.62KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ88.5 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

We develop a profit - maximizing neoclassical model of optimal firm size and growth across different industries based on differences in industry fundamentals and firm productivity. In the model, a conglomerate discount is consistent with profit maximization. The model predicts how conglomerate firms will allocate resources across divisions over the business cycle and how their responses to industry shocks will differ from those of single - segment firms. Using plant level data, we find that growth and investment of conglomerate and single - segment firms is related to fundamental industry factors and individual segment level productivity. The majority of conglomerte firms exhibit growth across industry segments that is consistent with optimal behaviour.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali