Is there Really No Conglomerate Discount?

Material TypeArticleLanguageEnglish
TitleIs there Really No Conglomerate Discount? Author(S)Manuel Ammann (Author)
Abstract  Recent research questions the existence of a conglomerate discount. This study addresses two of the most important explanations for the conglomerate discount and finds evidence in support of an economically and statistically significant discount. The first explanation is that the risk-reducing effect of diversification increases debt value and consequently the use of the book value of debt leads to an underestimation of firm value in diversified firms ...Paginationp264–288
Journal TitleJournal of Business Finance & Accounting  
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