firm-level diversification …

recommendation is to use the Present Value (PV) formula of expected cash flows, with a discount rate based on the CAPM. In this paper … prices. We find that discounting based on expected returns (such as variants on the CAPM or multi-factor model), performs … show that under standard assumptions about the production function, the value loss from using the CAPM can be sizable, of …

This paper examines the effect of geographic and industrial diversification on firm value for a sample of over 20 … diversification results in over-estimation of the negative value impact of industrial diversification, but has little impact on … estimates of the positive value impact of geographic diversification …

In this paper, we show that Tobin's q and firm diversification are negatively related. This negative relation holds for … different diversification measures and when we control for other known determinants of q. We show further that diversified firms … number of segment constant. Our evidence is consistent with the view that firms seek growth through diversification when they …