Download or read book Both Sides of Corporate Diversification written by Gordon M. Bodnar and published by . This book was released on 1997 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of geographic and industrial diversification on firm value for a sample of over 20,000 firm-year observations of U.S. corporations from 1987-1993. Our" multivariate tests indicate the average value of a firm with international operations is 2.2% higher than comparable domestic single activity firms, while the average value of a firm with activities in multiple industrial segments is 5.4% lower than a portfolio of comparable focused domestic firms in similar activities. More importantly, we demonstrate that failure to control simultaneously for both dimensions of diversification results in over-estimation of the negative value impact of industrial diversification, but has little impact on estimates of the positive value impact of geographic diversification

Download or read book Both Sides of Corporate Diversification written by Gordon M. Bodnar and published by . This book was released on 2010 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of geographic and industrial diversification on firm value for a sample of over 20,000 firm-year observations of U.S. corporations from 1987-1993. Ourquot; multivariate tests indicate the average value of a firm with international operations is 2.2% higher than comparable domestic single activity firms, while the average value of a firm with activities in multiple industrial segments is 5.4% lower than a portfolio of comparable focused domestic firms in similar activities. More importantly, we demonstrate that failure to control simultaneously for both dimensions of diversification results in over-estimation of the negative value impact of industrial diversification, but has little impact on estimates of the positive value impact of geographic diversification.

Download or read book Geographic and Industrial Corporate Diversification written by Augustine Duru and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the relation between corporate diversification and CEO compensation. We document that geographic diversification provides a compensation premium, while industrial diversification is associated with lower levels of CEO pay. We also examine the effect of corporate diversification on the structure and performance criteria of CEO compensation contracts. We find that both diversification strategies are associated with a greater use of incentive-based compensation and with a greater reliance on market-based, rather than accounting-based measures of firm performance. Finally, we address the question of whether shareholders reward CEOs for corporate diversification. We document that while value-enhancing geographic diversification is rewarded, non-value-enhancing industrial diversification is penalized.

Download or read book Strategic Management color written by and published by . This book was released on 2020-08-18 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: Strategic Management (2020) is a 325-page open educational resource designed as an introduction to the key topics and themes of strategic management. The open textbook is intended for a senior capstone course in an undergraduate business program and suitable for a wide range of undergraduate business students including those majoring in marketing, management, business administration, accounting, finance, real estate, business information technology, and hospitality and tourism. The text presents examples of familiar companies and personalities to illustrate the different strategies used by today's firms and how they go about implementing those strategies. It includes case studies, end of section key takeaways, exercises, and links to external videos, and an end-of-book glossary. The text is ideal for courses which focus on how organizations operate at the strategic level to be successful. Students will learn how to conduct case analyses, measure organizational performance, and conduct external and internal analyses.

Download or read book The Impact of Geographic Diversification on Firm Performance written by Young Sang Kim and published by . This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically examines the economic effects of both corporate industrial and geographic diversifications. Using a sample of 28,050 firm year observations from 1990 to 1998, we find that industrial and geographic diversifications are associated with firm value decrease. Consistent with Denis et al. (2002), the costs of corporate diversification may outweigh the benefits of diversification. We find that geographically diversified firms have higher Ramp;D expenditures, advertising expenses, operating income, ROE and ROA than industrially diversified firms. In addition, higher Ramp;D expenditures create value for multi-segment global firms, but not for single segment global firms. This result implies that there exists an interaction effect between industrial and geographic diversification. We also examine the effects of agency cost issues, as characterized by the diversification discount, on both industrial and geographic diversification. Consistent with the agency explanation, firms with high equity-based compensation are associated with higher firm value than firms with low equity-based compensation. Also, we find that firms with a higher insider ownership percentage are associated with higher excess value.

Download or read book Geographic and Industrial Diversification of Developing Country Firms written by Lilac Nachum and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the impact of the industrial and geographical diversification activities of developing country firms on their performance, and draws attention to the unique attributes of these firms and of the circumstances under which their diversification activities take place. The empirical analysis is based on data from 345 developing country firms. The findings suggest significant and positive association between industrial and geographic diversification and performance, and considerable variation of these relationships across developing regions and diversification strategies.

Download or read book International Evidence on the Value of Product and Geographic Diversity written by Luc Laeven and published by . This book was released on 2001 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate diversification destroys value due to both agency and influence costs. Consistent with this finding, insider ownership is associated with less corporate diversification.

Download or read book On the Measurement of Corporate Geographic Diversification written by Praveen R. Nayyar and published by . This book was released on 1996 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Diversification and Stock Returns written by Tatiana Isakovski and published by . This book was released on 2003 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Measuring Geographic Diversification and Product Diversification written by David G. Hoopes and published by . This book was released on 1994 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Relationship Between Product and Geographic Diversification written by Ohad Ref and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study seeks a richer and more complete understanding of the process of firm growth by making a more fine-grained distinction between (1) the different patterns of product and geographic diversification, particularly between entering new product and geographic markets compared to expansion in existing noncore product and foreign markets; and (2) between firms with different diversification experience, specifically between single-country single-industry firms, single industry geographically-diversified firms, single-country product-diversified firms, and product and geographically-diversified firms. It shows that short-run constraints compel firms to choose between entering new product markets and new geographic markets, within a given time period, and that prior experience in entering new markets lessens the impact of short-run constraints on firm capacity to simultaneously extend product and geographic scope. Furthermore, it reveals that there is a significant difference between firm capacity to enter simultaneously into new product and geographic markets, compared to firm capacity to expand simultaneously within existing noncore product and foreign markets. Thus, it demonstrates the main argument of this paper concerning the importance of distinguishing between the different patterns of product and geographic diversification.

Download or read book The Performance of Small Firms written by David J. Storey and published by Routledge. This book was released on 2016-07-22 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study, originally published in 1987, addresses the question of small firm performance. Drawing on an extensive database containing financial, employment and ownership data for several thousand small firms, the book examines whether small firms do actually provide jobs, whether they grow and why small firms fail. Guidance is given on how to spot the signs of impending failure in a small business, which is of use to accountants small business PR actioners and government grant providers.

Download or read book Geographical Versus Industrial Diversification written by and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Growth and Evolution of Multinational Enterprise written by Robert D. Pearce and published by Edward Elgar Publishing. This book was released on 1993 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: As leading enterprises increasingly recognize the need for global strategy in the face of a continually competitive business environment, they also need to assess a greater heterogeneous range of possible paths to growth. This accomplished book offers an empirical analysis of some of these possibilities. Drawing on a large database of multinational firms, it investigates, for the first time, a series of important issues within an internally consistent ideological framework. It tests the determinants of the internationalization of sales by analysing overseas production ratio, parent export ratio, overseas sales ratio and sourcing ratio. It also analyses industrial diversification as an alternative route to growth. The Growth and Evolution of Multinational Enterprise will be of great interest to researchers and professional economists specializing in multinational companies, industrial economics and international business.

Download or read book Geographic Diversification and Firm Value in the Financial Services Industry written by Markus Schmid and published by . This book was released on 2013 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether geographic diversification is value-enhancing or value-destroying in the financial services sector, broadly defined. Our dataset comprises approximately 3,579 observations over the period from 1985 to 2004 and covers the entire range of U.S. financial intermediaries ndash; commercial banks, investment banks, insurance companies, asset managers, and financial infrastructure services firms. We use two alternative measures of geographic diversification: (1) a dummy variable whether the firm reports more than one geographic segment and (2) the percentage of sales from non-domestic operations. Our results indicate that geographic diversification is not associated with a significant valuation discount in financial intermediaries. However, when accounting for the firms' main activity-areas, we find evidence of a significant discount associated with geographic diversification in securities firms and a premium in credit intermediaries and insurance companies. All these results are robust after taking into account functional diversification of the firms as well as a potential endogeneity of both functional and geographic diversification.

Download or read book Changes in the Industrial and Geographical Diversification of Leading Firms in European Manufacturing written by Laura Rondi and published by . This book was released on 2003 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Technological Innovation and Third World Multinationals written by Paz Estrella Tolentino and published by Routledge. This book was released on 2003-09-02 with total page 561 pages. Available in PDF, EPUB and Kindle. Book excerpt: This examines the relationship between technological growth and outward direct investment from firms in Asia and Latin America which has become increasingly siginificant as these countries develop.