search query: @author Conine, T. E. / total: 8
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| Author: | Conine, T. E. Jensen, O. W. Tamarkin, M. |
| Title: | An optimal production and the market to book ratio given limited shareholder diversification. |
| Journal: | Management Science
1989 : AUG, VOL. 35:8, p. 1004-1013 |
| Index terms: | CAPITAL ASSET PRICING PRODUCTION VALUATION |
| Language: | eng |
| Abstract: | Examined is a firm's output decision and market value to book value ratio when its shareholders hold a limited number of risky assets; that is, they hold a subset of the market portfolio. The impact of this limited diversification is examined in the framework of the capital asset pricing model. The primary theoretical result indicates that the market to book ratio is a function of the degree of shareholder diversification, hereafter antidiversification. A suggestion is presented as to how management can determine easily the degree to which its shareholders are diversified. |
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