Both Sides of Corporate Diversification: The Value Impacts of Geographic and Industrial Diversification

Gordon Bodnar, C. Tang and J. Weintrop

Weiss Center Working Papers from Wharton School - Weiss Center for International Financial Research

Abstract: This paper examines the effect of both geographic and industrial diversification on firm value for a sample of over 20,000 firm-year observations of US corporations from 1987-1993. Our multivariate tests indicate the average value of a firm with international operations is 2.2% higher than a comparable domestic single-activity firm, while the average value of a firm with activities in multiple industrial segments is 5.4% lower than a protfolio of comparable domestic single-activity firms.

Keywords: GEOGRAPHY; INDUSTRY; CORPORATIONS (search for similar items in EconPapers)
JEL-codes: F3 G3 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (9)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Both Sides of Corporate Diversification: The Value Impacts of Geographic and Industrial Diversification (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:pennif:98-02

Access Statistics for this paper

More papers in Weiss Center Working Papers from Wharton School - Weiss Center for International Financial Research Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().