WebJan 1, 2012 · To estimate how much of the diversification discount can be attributed to corporate governance, we regress our measure of firm value against a dummy variable for diversified firms and a range of control variables, with the estimated coefficient on the diversification dummy serving as a baseline estimate of the discount. WebNov 15, 2024 · Diversification is an investing strategy used to manage risk. Rather than concentrate money in a single company, industry, sector or asset class, investors diversify their investments across a ...

Explaining the Diversification Discount - New York University

WebMar 25, 2004 · Using these data on a sample that yields a discount according to segment data, I find a diversification premium. The premium is robust to variations in the sample, … Webdiversification discount from both a theoretical and an empirical point of view. Section 2 explains the problem of causal inference with non-experimental data as it applies to the diversification discount, as well as the propensity score methodology used to address it. Section 3 reports four sets of results: (1) lincoln college preparatory academy kcmo

Impact of Unrelated Diversification on - Management and

WebDec 19, 2000 · On a sample of firms that exhibit a diversification discount according to segment data, I find that, when BITS data are used, diversified firms actually trade at a significant average premium. The premium is robust to variations in the method, sample, business unit definition, and measures of excess value and diversification. WebThe diversification discount has been the subject of an active debate in corporate finance during the past few years.' At the heart of the debate is the question of whether … WebDiversification definition, the act or process of diversifying; state of being diversified. See more. lincoln college room booking