International Evidence on the Value of Product and Geographic Diversity

Laeven, Luc

World Bank, Washington, DC

关键词: AGENCY PROBLEMS;    ASSETS;    CAPITAL MARKETS;    COMPANY;    COMPARATIVE ADVANTAGE;   

DOI  :  10.1596/1813-9450-2729
RP-ID  :  WPS2729

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The author examines the effect ofproduct and geographic diversification on firm value for asample of 1,914 corporations in 18 countries. His resultsindicate that both product and geographic diversificationdestroy value at high levels of diversification, suggestingthat agency and influence costs arising from the increasedcomplexity outweigh the benefits of diversification at highlevels. Geographic diversification is valuable at lowlevels, however. The author finds that insider ownership isassociated with less diversification, across both productand geographic segments, suggesting that insiders viewcorporate diversification as value destroying.