Does Diversification Destroy Value? Evidence From Industry Shocks
نویسندگان
چکیده
منابع مشابه
Does diversification destroy value? Evidence from the industry shocks
Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous variation in diversification is necessary to draw inferences about the causal effect. We examine changes in the within-firm dispersion of industry investment, or ‘‘diversity’’. We find that exogenous changes in diversity, due to changes in industry investment, are negatively related ...
متن کاملDoes diversification destroy value? Evidence from industry shocks
Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous variation in diversification is necessary in order to draw inferences about the causal effect. We examine changes in the within-firm dispersion of industry investment, or “diversity.” We find that exogenous changes in diversity, due to changes in industry investment, are negatively r...
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This paper investigates the valuation effects of corporate international diversification by examining cross-border mergers and acquisitions of U.S. acquirers over the period 1990-1999. We find that, on average, acquisitions of “fairly valued” foreign business units do not lead to value discounts. Consistent with the industrial diversification discount literature, unrelated cross-border acquisit...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2000
ISSN: 1556-5068
DOI: 10.2139/ssrn.236139