Does corporate diversification reduce shareholder value? Since firms endogenously choose
to diversify, exogenous variation in diversification is necessary to draw inferences about the …

This paper argues that the documented discount on diversified firms is not per se evidence
that diversification destroys value. Firms choose to diversify. We use three alternative …

We show that the value of corporate diversification increased during the 2007–2009
financial crisis. Diversification gave firms both financing and investment advantages. First …

We show that the value of corporate diversification increased during the 2007–2009
financial crisis. Diversification gave firms both financing and investment advantages. First …

Using plant‐level observations from the Longitudinal Research Database I show that
conglomerates are more productive than stand‐alone firms at a given point in time …

We investigate whether the diversification discount occurs partly as an artifact of poor
corporate governance. In panel data models, we find that the discount narrows by 16% to …

We survey the recent developments in the literature on corporate diversification. This
literature is voluminous, diverse, and quite old. To make the task more manageable, we …

Existing literature argues that disparity in investment opportunities within diversified firms
can erode firm value. We investigate the diversity cost hypothesis of spinoffs by using post …

We estimate diversification's effect on firm value by imputing stand-alone values for
individual business segments. Comparing the sum of these stand-alone values to the firm's …

We examine the relation between corporate diversification, real earnings management, and
firm value. Our analysis indicates that industrial diversification and the combination of …