Klein, Peter G. - EconWPA - 1997
This paper challenges the conventional wisdom that the 1960s conglomerates were inefficient. I offer valuation results … industry-adjusted valuation, profitability, leverage, and investment ratios for thirty-six large, acquisitive conglomerates … from 1966 to 1974. During the early 1970s, the conglomerates were less valuable and less profitable than standalone firms …