Is there a diversification discount in financial conglomerates?
نویسندگان
چکیده
منابع مشابه
On the Risk Situation of Financial Conglomerates: Does Diversification Matter?
In general, conglomeration leads to a diversification of risks (the diversification benefit) and to a decrease in shareholder value (the conglomerate discount). Diversification benefits in financial conglomerates are typically derived without accounting for reduced shareholder value, even though a comprehensive analysis requires competitive conditions within the conglomerate, i.e., shareholders...
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* Group Treasurer, Colonial Limited. 1 The Tripartite Group of Banking, Securities and Insurance Regulators defined a financial conglomerate as “any group of companies under common control whose exclusive or predominant activities consist of providing significant services in at least two different financial sectors (banking, securities, insurance)” (see Tripartite Group of Banking, Securities a...
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Firms pursue diversification for sake enhancing financial performance. Some theories state positive relationship between diversification and financial performance. However, there are some theories for negative relationship about the issue. The study has filled the gap that most studies done in developed countries and there are fewer studies in developing country like Malaysia. In this study, re...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2007
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2005.06.001