Explaining The Diversification Discount  

Oleh:

Campa, Jose Manuel ; Kedia, Simi

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Journal of Finance (EBSCO) vol. 57 no. 4 (2002), page 1731-1762.
Topik: diversification; studies; diversified companies; business valuation; econometrics; correlation analyis; statistical analysis
Fulltext: p 1731.pdf (146.44KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ88.6 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

This paper argues that the documented discount on diversified firms is not per se evidence that diversification destroys value. Firms choose to diversity. We use three alternative econometric techniques to control for the endogeneity of the diversification decision, and find evidence supporting the self - selection of diversifying firms. We find a strong negative correlation between a firm's choice to diversify and firm value. The diversification discount always drops and sometimes turns into a premium. There also exists evidence of self - selection by refocusing firms. These results point to the improtance of explicitly modeling the endogeneity of the diversification status in analysing its effect on firm value.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali