Corporate Diversification: What Gets Discounted?

By Sattar A. Mansi, David M. Reeb. 2002

386 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/61c7a6f7703c2509afbd81bceb115edf5f75eb21

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In Accounting

1. Z. Tong
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In Strategy and Management

1. T. Swift
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8. John A. Doukas

Citations in the corpus

• How Much of the Diversification Discount Can Be Explained by Poor Corporate Governance (2012, neutral): “firms using post-1997 data: Mansi and Reeb (2002) and Ammann, Hoechle, and Schmid (2009). 5 We rely exclusively on NAICS codes for industry classification as they are available from 1990 to 2005 and therefore cover the whole sample period, while SIC codes are available until 2000 only.”
• Foreign direct investment, diversification and firm performance (2003, neutral): “Villalonga, 2000; Campa and Kedia, 2002; Graham et al., 2002; Mansi and Reeb, 2002 ).”
• Firm Diversification and the Value of Corporate Cash Holdings (2011, background): “Mansi and Reeb (2002) explore the risk reduction effect of firm diversification, and argue that diversification is”
• Does Auditor Quality and Tenure Matter to Investors? Evidence from the Bond Market (2004, neutral): “12 Finally, to control for the jump in the credit spreads of the noninvestment grade bonds (Mansi and Reeb [2002]), we also include an indicator variable for noninvestment”
• Flexibility in internationalization: is it valuable during an economic crisis? (2009, background): “We also controlled for the number of foreign countries in which the firm had investments to control for other potential benefits coming from investing abroad (Allen and Pantzalis, 1996; Mansi and Reeb, 2002; Rugman, 1979).”
• Does global diversification destroy firm value? (2006, background): “Mansi and Reeb (2002) question the findings of the industrial diversification discount studies by showing that the measure of excess value, used in most”
• Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance (2007, background): “This distinction is more important in multiple-period models, since default can occur prior to debt maturity if the bond defaults on a coupon payment.”
• Does Customer Satisfaction Matter to Investors? Findings from the Bond Market (2009, background): “Mansi and Reeb (2002) suggest that using the average of both Moody’s and S&P provides the most efficient measure of the default risk pre- 3We define duration as the weighted average time to full recovery of principal and interest payments. mium.”
• Corporate Governance, Shareholder Rights and Firm Diversification: An Empirical Analysis (2006, neutral): “More recently, arguments have been advanced and new evidence presented that diversification may be beneficial or, at the minimum, not value-destroying (Villalonga, 2004; Whited, 2001; Campa and Kedia, 2002; Mansi and Reeb, 2002).”
• Corporate Diversification and Credit Constraints: Real Effects across the Business Cycle (2006, background): “Our results are not sensitive to different specifications of the debt issuance equation or to controlling for target leverage as in Hovakimian, Opler and Titman (2001).”