Is It Inefficient Investment that Causes the Diversification Discount

By Toni M. Whited. 2001

441 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/561e5c1e09000d291fad9c4c504da36597c1d4da

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Citations in the corpus

Corporate Governance, Shareholder Rights and Firm Diversification: An Empirical Analysis (2006, neutral): “Others have suggested that it may be the acquisition of poorly performing units (Graham et al., 2002) or miscalculations of Tobin s q (Whited, 2001) that explain the diversification discount.”
Internal Capital Markets in Times of Crisis: The Benefit of Group Affiliation* (2019, neutral): “Subsequent empirical studies raise doubts about whether a large and well-diversified internal capital market creates or destroys value (e.g., Whited, 2001; Schoar, 2002; Villalonga, 2004).6 Whether or not the intragroup transfers are delaying the failure of otherwise bad firms in our setting is…”
Family ownership and R&D investment: The role of growth opportunities and business group membership (2015, background): “Thus, business groups often engage in cross-subsidization to help unprofitable affiliates (Bae, Kang, & Kim, 2002; Ferris et al., 2003; George & Kabir, 2008; Whited, 2001) by, for example, providing loans or loan guarantees, through equity investment, and through internal transactions (Estrin, Poukl”
Business Groups in Emerging Markets: Paragons or Parasites? (2007, background): “See, for example, Campa and Kedia (2002), Chevalier (2004), and Whited (2001).”
Influence and Inefficiency in the Internal Capital Market: Theory and Evidence (2009, neutral): “However, both Whited (1999) and 39Since firm reorganization is common, there is a significant attrition problem when matching segments (i.e. matching segment identification numbers) from year-to-year.”
INTERNATIONAL DIVERSIFICATION AND FIRM PERFORMANCE: THE S-CURVE HYPOTHESIS (2004, background): “Past criticisms of Tobin’s Q have centered on the issue of measurement error and consequently biased estimation of the coefficient (Whited, 2001).”
The Determinants of Positive Long-Term Performance in Strategic Mergers: Corporate Focus and Cash (2004, neutral): “For non-merger studies see Lang and Stulz (1994), Comment and Jarrell (1995), Berger and Ofek (1995), Lamont and Polk (2001, 2002), Whited (2001), Graham et al. (2002), and Mansi and Reeb (2002).”