Diversification Discount or Premium? New Evidence from the Business Information Tracking Series

By Belén Villalonga. 2004

828 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/f8492ca76de62647a874fb75c24626f6c56312bf

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Citations in the corpus

Who Makes Acquisitions? CEO Overconfidence and the Market's Reaction (2008, neutral): “5 Graham, Lemmon, and Wolf (2002) and Villalonga (2004), among others, question the interpretation of the diversification discount and attribute the effect to pre-existing discounts or econometric and data biases.”
The influence of financial and legal institutions on firm size (2006, background): “Using a Census data set that contains smaller singlesegment firms, however, Villalonga (2004) argues that there may be rather a conglomerate premium.”
To what extent does corporate liquidity affect M&A decisions, method of payment and performance? Evidence from China (2017, result): “This is in line with recent research according to which diversification may be related to higher firm value (Campa and Kedia, 2002; Villalonga, 2004), as firms may choose to diversify to move away from industries with relatively low growth prospects.”
Shareholder Value Creation in European M&As (2004, background): “…Ofek (1995) provided the most comprehensive evidence on the existence of this diversification discount, while more recently Campa and Kedia (2002), Villalonga (2004) and Maksimovic and Phillips (2002) provide results consistent with the existence of this discount even when firms are maximising…”
How Much of the Diversification Discount Can Be Explained by Poor Corporate Governance (2012, neutral): “…diversified firms’ debt may trade at a premium to book value as a result of the risk-reducing effects of diversification.2 Campa and Kedia (2002) and Villalonga (2004a) argue that the diversification discount may be endogenous, as it represents the outcome of inferior investment choices…”
Does the Stock Market Value Bank Diversification (2007, background): “Similar disagreement exists in the literature on conglomeration in non-financial corporations (e.g. Berger and Ofek, 1995; Villalonga, 2004).”
Diversification, Coordination Costs and Organizational Rigidity: Evidence from Microdata (2010, neutral): “…center following diversification, and the main question the empirical literature on the costs of the diversification has grappled with is whether diversification destroys value (Wernerfeldt and Montgomery, 1988; Lang and Stulz, 1994; Berger and Ofek, 1995; Campa and Kedia, 2002; Villalonga, 2004).”
Institutional investors as monitors of corporate diversification decisions: Evidence from real estate investment trusts (2014, neutral): “(2002), Villalonga (2004b)). These difficulties have led to a long-standing debate over whether a diversification discount exists (on average), with results dependent upon the specific time period studied and the econometric approach taken. More importantly, these difficulties also imply that it is ”
A Modern Resource Based Approach to Unrelated Diversification (2007, neutral): “For instance, in conditions of market failure, unrelated diversifications have been found to perform at a premium (Campa and Kedia, 2002; Chatterjee and Wernerfelt, 1991; Hoskisson, 1987; Khanna and Palepu, 2000; Michel and Shaked, 1984; Villalonga, 2004).”
Can Innovation Help U.S. Manufacturing Firms Escape Import Competition from China? (2015, neutral): “Villalonga (2004) documents that firms sometimes change the segments they report when there is no real change in their operations.”
GLOBALIZATION AND MULTIPRODUCT FIRMS (2014, background): “There are also some who argue that the diversification discount may in fact be a statistical artifact of selection (Villalonga, 2004).”
Controlling for endogeneity with instrumental variables in strategic management research (2008, methodology): “To illustrate, previous research on the impact of business diversification on performance used GDP measures as one type of instrument (Campa and Kedia, 2002; Mackey, 2006; Villalonga, 2004b).”