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| Author: | Lins, K. Servaes, H. |
| Title: | International evidence on the value of corporate diversification |
| Journal: | Journal of Finance
1999 : DEC, VOL. 54:6, p. 2215-2239 |
| Index terms: | FINANCE DIVERSIFICATION ECONOMICS |
| Language: | eng |
| Abstract: | The valuation effect of diversification is examined for large samples of firms in Germany, Japan, and the United Kingdom for 1992 and 1994. The authors find no significant diversification discount in Germany, but a significant diversification discount of 10 percent in Japan and 15 percent in the UK. Concentrated ownership in the hands of insiders enhances the valuation effect of diversification in Germany, but not in Japan or the UK. For Japan, only firms with strong links to an industrial group have a diversification discount. |
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