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pure conglomerate. It establishes that the answer depends critically on the volatility of corporate assets. If volatility … conclusions of empirical studies that delve into the existence of a conglomerate discount. …
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The authors show that there is a negative relationship between economic policy uncertainty (EPU) and firm overinvestment using Korean data from 2007 to 2016. Since Jensen (1986) shows that a firm's free cash flow is an important factor of overinvestment, the authors examine how free cash flow...
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