Diversification and corporate decisions
نویسندگان
چکیده
منابع مشابه
Corporate Diversification and Agency
Firms undertake a variety of actions to reduce risk through diversification, including entering diverse lines of business, taking on project partners, and maintaining portfolios of risky projects such as R&D or natural resource exploration. By a well-known argument, securities holders do not directly benefit from risk-reducing corporate diversification when they can replicate this diversificati...
متن کاملTechnological Specialization and Corporate Diversification∗
We document a trend towards fewer and more-focused conglomerates, and develop a model that explains these patterns based on increasing technological specialization. In the model, diversification adds value by allowing efficient within-firm resource reallocation. However, synergies decrease with technological specialization, leading to fewer diversified firms over time. Also, the optimal level o...
متن کاملDoes Corporate Diversification Destroy Value?
We analyze several hundred firms that expand via acquisition and0or increase their number of business segments. The combined market reaction to acquisition announcements is positive but acquiring firm excess values decline after the diversifying event. Much of the excess value reduction occurs because our sample firms acquire already discounted business units, and not because diversifying destr...
متن کاملInstitutional investors as monitors of corporate diversification decisions: Evidence from real estate investment trusts
☆ Wewould like to thank an anonymous referee, Jeff and the participants at the 2010 American Real Estate Real Estate Investment Trusts, and the 2010 UC Irvine A research associate of the NBER and an advisor to Gers ⁎ Corresponding author at: Department of Finance, E-mail address: [email protected] 1 Lewellen (1971) discusses the coinsurance effect problems around equity offerings....
متن کاملInformation Production, Corporate Investment and Diversification Discount
This paper offers a market microstructure based model to explain the well-documented diversification discount. While explicitly assuming that stock price conveys valuable information to the management, our model shows that the value loss from diversification is a function of the stock price informativeness. If more investors are willing to follow and actively trade a certain stock, more informa...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Corporate Ownership and Control
سال: 2006
ISSN: 1810-3057,1727-9232
DOI: 10.22495/cocv3i3c1p6