DIVERSIFICATIONS EFFECT ON FIRM VALUE

• 成果类型: Article
• 署名作者: BERGER, PG; OFEK, E
• 署名单位: New York University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)00798-6
• 发表日期: 1995
• 页码: 39-65
• 关键词: Diversification; focus; overinvestment; cross-subsidization; Organizational structure

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.