Product market competition and the value of diversification
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Author
Type :
Article
Publication Status :
Published
Access :
openAccess
Attribution-NonCommercial-NoDerivs 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Attribution-NonCommercial-NoDerivs 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Abstract
I examine how industry concentration affects the value of diversification. I find that con- glomerates that operate mainly in concentrated industries (concentrated conglomerates) have higher diversification values. Using tariff reductions as competitive shocks, I show that concentrated conglomerates experience significant decline in their valuations and respond aggressively to threats in less-competitive industries.
Source :
Finance Research Letters
Date :
2023-12
Volume :
58
Publisher :
Elsevier
URI
http://hdl.handle.net/10679/8930https://www.sciencedirect.com/science/article/pii/S154461232300421X
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