Corporate Diversification : What Gets Discounted?  

Oleh:

Reeb, David M. ; Mansi, Sattar A.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Journal of Finance (EBSCO) vol. 57 no. 5 (2002), page 2167-2184.
Topik: CORPORATE; studies; diversified companies; capital investments; economies of scale
Fulltext: p 2167.pdf (91.14KB)

Ketersediaan

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

Lihat Detail Induk

Isi artikel

Prior literature finds that diversified firms sell at a discount relative to the sum of the imputed values of their business segments. This paper explores this documented discount and argues that it stems from risk - reducing effects of corporate diversification. Consistent with this risk - reduction hypothesis, the paper finds that : a. Shareholder losses in diversification are a function of firm leverage b. All equity firms do not exhibit a diversification discount c. Using book values of debt to compute excess value creates a downward bias for diversified firms. Overall, the results indicate that diversification is insignificantly related to excess firm value.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali