We investigate the possibility that the diversification discount is due to differing growth opportunities between … cannot account for the diversification discount …

This paper examines the existence of a diversification discount in the Australian takeover market. A sample of 446 … activity out to one year following the announcement. Our results failed to confirm the existence of a diversification discount … in the diversified segment fared better than in the non-diversified segment, which is contrary to diversification …

diversified firms are also the most valuable and as a consequence the value-weighted diversification “discount” is actually a … market value of the S&P 500, so among large firms, they are considered more valuable. We show that the diversification … measure there is no diversification discount …

We show that the value of corporate diversification increased during the 2007–2009 financial crisis. Diversification … significantly during the crisis. Our analysis provides new evidence on how the diversification discount and its drivers vary with … financial constraints and economic conditions, and suggests that corporate diversification can serve an important insurance …

We examine whether and why the value of diversification changed during the 2008–2009 financial crisis. We find that … endogeneity of either financing constraints or firms' diversification choices. We also find that the increase did not simply …

of diversification on value that are free from common selection problems in the literature. On average, stock prices rose … 1 to 2 percent in response to forced refocusing, suggesting that corporate diversification was a value …-destroying strategy for those firms. The implied "excess value/diversification discount" has at best a weak connection to the announcement …

, we find a discount for unrelated corporate diversification similar to that found for other economies …

The marginal benefits of diversification exceed the costs by a decreasing margin, and diversifying beyond the optimal … level will produce a wealth loss. This trade-off predicts an inverted U-relation between the degree of diversification and … suggesting efficient diversification. In line with the endogeneity of diversification, the findings also indicate that the …

The article studies the relation between the 1997 crisis and the diversification of the 5 main business groups in … Colombia. The entropy measure of diversification did not fall during the crisis, which agrees with the risk-sharing hypothesis … of business groups. Diversification fell after the crisis but this did not lead to the disappearance of business groups …