This study analyzes the existence of the diversification discount in the German stock market. Recent examples show that the degree of diversification is an important managerial decision variable and highlight the importance of the topic for practitioners. The diversification discount was...

We analyze whether the diversification discount is driven by the book value bias of corporate debt. Book values of debt may be a more downward biased proxy of the market value of debt for diversified firms, relative to undiversified firms, as diversification leads to lower firm risk. Thus,...

This paper evaluates numerous diversification strategies as a possible remedy against widespread costly investment mistakes of individual investors. Our results reveal that a very broad range of simple heuristic allocation schemes offers similar diversification gains as well-established or...

We consider the random conductance model where the underlying graph is an infinite supercritical Galton–Watson tree, and the conductances are independent but their distribution may depend on the degree of the incident vertices. We prove that if the mean conductance is finite, there is a...