Are Real Options a missing piece in the Diversification-Value Puzzle?
| Autor: | Pilar Velasco, Gabriel de la Fuente, Pablo de Andrés |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
050208 finance Valor de la empresa Financial economics 05 social sciences Growth opportunities Oportunidades de crecimiento Diversification (marketing strategy) Corporate Finance Empresas-Finanzas Corporate diversification Firm value Mediating effect Market value added 0502 economics and business Economics Diversificación corporativa Portfolio Efecto mediación GMM 050207 economics Market value Finance |
| Zdroj: | UVaDOC. Repositorio Documental de la Universidad de Valladolid instname |
| DOI: | 10.1016/j.irfa.2016.10.007 |
| Popis: | Producción Científica This paper examines the impact of corporate diversification on a firm’s market value in terms of changes in its mix of value sources between growth options and assets-in-place. We argue that the traditionally assumed replicability of corporate diversification benefits by individual investors might not be as feasible when diversification implies acquiring new growth options as when it only involves assets-in-place investments. We further explain why a different effect of diversification on a firm’s mix of value sources can occur, therefore leading to a mediating role of growth options between diversification and market value. Using a panel sample of U.S. firms from 1998 to 2010, we find that a firm’s growth options portfolio helps explain the effect of diversification strategy on its market value. Financial support has been received from the Regional Government of Castilla y León (Ref. VA260U14), the Spanish Ministry of Science and Innovation (Ref. ECO2014-56102-P), the Spanish Ministry of Education (FPU Programme), and the Banco Herrero Foundation. |
| Databáze: | OpenAIRE |
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