The valuation discount of multi-segment firms in Australia

Accounting and Finance

Volumn 43, Issue 2, 2003, Pages 167-185

  Fleming, Grant ^a,b   Oliver, Barry ^a   Skourakis, Steven ^c  

^a AUSTRALIAN NATIONAL UNIVERSITY   (Australia)

^b Wilshire Australia   (Australia)

^c Deloitte Touche Tohmatsu   (United States)

Author keywords

Diversification; Ownership structure

Indexed keywords

EID: 73849110387     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/1467-629X.00087     Document Type: Article

References (32)

1. Berger, P. and E. Ofek, 1995, Diversification's effect on firm value, Journal of Financial Economics 37, 39-66.
2. Bhagat, S., A. Shleifer, and R. Vishny, 1990, Hostile takeovers in the 1980s: The return of corporate specialisation, Brookings Papers on Economic Activity: Microeconomics, 1-72.
3. Bosworth, D., P. Dawkins, M. Harris, and S. Kells, 1997, Diversification and the performance of Australian enterprises, Working paper 28/97 (Melbourne Institute, Melbourne).
4. Campa, J. and S. Kedia, 2000, Explaining the diversification discount, Working paper (New York University).
5. Chevalier, J., 2000, What do we know about cross-subsidization? Evidence from the investment policies of merging firms, Working paper (University of Chicago).
6. Comment, R. and G. A. Jarrell, 1995, Corporate focus and stock returns, Journal of Financial Economics 37, 67-87.
7. Elgers, P. T. and J. J. Clark, 1980, Merger types and shareholder returns: Additional evidence, Financial Management 9, 66-72.
8. Fauver, L., J. Houston, and A. Naranjo, 2002, Capital market development, integration, legal systems, and the value of corporate diversification: a cross-country analysis, Paper presented to the Tuck-JFQA Contemporary Corporate Governance Issues II Conference.
9. Feeny, S. and M. Rogers, 1999, Market share, concentration and diversification in firm profitability, Working paper 20/99 (Melbourne Institute, Melbourne).
10. Graham, J., M. Lemmon, and J. Wolf, 2001, Does corporate diversification destroy value?, Working paper (Duke University).
11. Hubbard, R. G. and D. Palia, 1999, A re-examination of the conglomerate merger wave in the 1960s: An internal capital markets view, Journal of Finance 54 (3), 1131-51.
12. Jensen, M. C., 1989, The eclipse of the public corporation, Harvard Business Review 67, 61-74.
13. Kaplan, S. N. and M. S. Weisbach, 1992, The success of acquisitions: Evidence from divestitures, Journal of Finance 47, 107-38.
14. Khanna, T. and K. G. Palepu, 1997, Why focused strategies may be wrong for emerging markets, Harvard Business Review July-August, 41-51.
15. Khanna, T. and K. G. Palepu, 2000, Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups, Journal of Finance 55, 867-91.
16. Klein, P. G., 1997, Were the conglomerates inefficient? A reconsideration, Working paper (Department of Economics, University of Georgia).
17. Lamont, O. and C. Polk, 2001, The diversification discount: Case flows vs. returns, Journal of Finance 56, 1693-721.
18. Lang, L. H. P. and R. M. Stulz, 1994, Tobin's Q, corporate diversification, and firm performance, Journal of Political Economy 102, 1248-80.
19. Lins, K. and H. Servaes, 1999, International evidence on the value of corporate diversification, Journal of Finance 54, 2215-39.
20. Lins, K. and H. Servaes, 2001, Is corporate diversification beneficial in emerging markets?, Working paper (London Business School).
21. Maksimovic, V. and G. Phillips, 2001, The market for corporate assets: Who engages in mergers and asset sales and are there efficiency gains?, Journal of Finance 56, 2019-65.
22. Matsusaka, J. G., 1993, Takeover motives during the conglomerate merger wave, RAND Journal of Economics 24, 357-79.
23. Ravenscraft, D. J. and F. M. Scherer, 1987, Mergers, sell-offs, and economic efficiency (The Brookings Institution, Washington D. C.).
24. Rogers, M., 2001, The effect of diversification on firm performance, Working paper 2/01 (Melbourne Institute, Melbourne).
25. Rumelt, R. P., 1974, Strategy, structure and economic performance, (Graduate School of Business Administration, Harvard University, Boston).
26. Rumelt, R. P., 1982, Diversification strategy and profitability, Strategic Management Journal 3, 359-69.
27. Scharfstein, D., 1998, The dark side of internal capital markets II: Evidence from diversified conglomerates, Working paper 6352 (NBER).
28. Servaes, H., 1996, The value of diversification during the conglomerate merger wave, Journal of Finance 51, 1201-25.
29. Ville, S. and D. Merrett, 2000, The development of large scale enterprise in Australia, 1910-64, Business History 42, 13-46.
30. Wernerfelt, B. and C. A. Montgomery, 1988, Tobin's Q and the importance of focus in firm performance, American Economic Review 78, 246-250.
31. White, H., 1980, A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity, Econometrica 48, 817-838.
32. Whited, T., 2001, Is it inefficient investment that causes the diversification discount? Journal of Finance 56, 1629-66.