International evidence on the value of corporate diversification

• 成果类型: Article
• 署名作者: Lins, K; Servaes, H
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University of London; London Business School
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00186
• 发表日期: 1999
• 页码: 2215-2239
• 关键词: CONGLOMERATE MERGER WAVE; firm performance; capital-markets; UNITED-STATES; cash flow; JAPAN; INVESTMENT; COSTS; OWNERSHIP; turnover

摘要

The valuation effect of diversification is examined for large samples of firms in Germany, Japan, and the United Kingdom for 1992 and 1994. We find no significant diversification discount in Germany, but a significant diversification discount of 10 percent in Japan and 15 percent in the U.K. Concentrated ownership in the hands of insiders enhances the valuation effect of diversification in Germany, but not in Japan or the U.K. For Japan, only firms with strong links to an industrial group have a diversification discount. These findings suggest that international differences in corporate governance affect the impact of diversification on shareholder wealth.