Both Sides of Corporate Diversification: The Value Impacts of Geographic and Industrial Diversification
AbstractThis paper examines the effect of both geographic and industrial diversification on firm value for a sample of over 20,000 firm-year observations of US corporations from 1987-1993. Our multivariate tests indicate the average value of a firm with international operations is 2.2% higher than a comparable domestic single-activity firm, while the average value of a firm with activities in multiple industrial segments is 5.4% lower than a protfolio of comparable domestic single-activity firms.
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Bibliographic InfoPaper provided by Wharton School - Weiss Center for International Financial Research in its series Weiss Center Working Papers with number 98-02.
Length: 36 pages
Date of creation: 1998
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GEOGRAPHY ; INDUSTRY ; CORPORATIONS;
Other versions of this item:
- Gordon M. Bodnar & Charles Tang & Joseph Weintrop, 1997. "Both Sides of Corporate Diversification: The Value Impacts of Geographic and Industrial Diversification," NBER Working Papers 6224, National Bureau of Economic Research, Inc.
- F3 - International Economics - - International Finance
- G3 - Financial Economics - - Corporate Finance and Governance
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