search query: @author Whited, T.M. / total: 3
reference: 3 / 3
« previous | next »
Author: | Whited, T.M. |
Title: | Is it inefficient investment that causes the diversification discount? |
Journal: | Journal of Finance
2001 : OCT, VOL. 56.5, p. 1667-1691 |
Index terms: | CONGLOMERATE COMPANIES DISCOUNT RATE DIVERSIFICATION INVESTMENT |
Language: | eng |
Abstract: | Diversified conglomerates are valued less than matched portfolios of pure-play firms. Recent studies find that this diversification discount results from conglomerates' inefficient allocation of capital expenditures across divisions. Much of this work uses Tobin's q as a proxy for investment opportunities, therefore hypothesizing that q is a good proxy. This paper treats measurement error in q. |
« previous | next »
SCIMA