DIVERSIFICATIONS EFFECT ON FIRM VALUE

被引:1632
作者
BERGER, PG [1 ]
OFEK, E [1 ]
机构
[1] NYU, STERN SCH BUSINESS, NEW YORK, NY 10003 USA
关键词
DIVERSIFICATION; FOCUS; OVERINVESTMENT; CROSS-SUBSIDIZATION; ORGANIZATIONAL STRUCTURE;
D O I
10.1016/0304-405X(94)00798-6
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We estimate diversification's effect on firm value by imputing stand-alone values for individual business segments. Comparing the sum of these stand-alone values to the firm's actual value implies a 13% to 15% average value loss from diversification during 1986-1991. The value loss is smaller when the segments of the diversified firm are in the same two-digit SIC code. We find that overinvestment and cross-subsidization contribute to the value loss. The loss is reduced modestly by tax benefits of diversification.
引用
收藏
页码:39 / 65
页数:27
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