Dissecting Conglomerate Valuations

• 成果类型: Article
• 署名作者: Boguth, Oliver; Duchin, Ran; Simutin, Mikhail
• 署名单位: Arizona State University; Arizona State University-Tempe; Boston College; University of Toronto
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13117
• 发表日期: 2022
• 页码: 1097-1131
• 关键词: internal capital-markets; EXTERNAL FINANCING CONSTRAINTS; corporate diversification; dark side; mergers; acquisitions; INVESTMENT; allocation; EFFICIENCY; discount

摘要

We develop a new method to estimate Tobin's Qs of conglomerate divisions without relying on standalone firms. Divisional Qs differ considerably from those of standalone firms across industries, over time, and in their sensitivity to economic shocks. The differences are explained by intraconglomerate covariance structures and access to internal capital markets that mitigate external financing frictions. Consequently, the Qs capture variation in the allocation of assets in the economy: within firms through internal capital markets and across focused and diversified firms through diversifying acquisitions. Overall, our method provides opportunities to study the economic mechanisms that explain corporate diversification.