dc.contributor.author | Klein, Peter G. | eng |
dc.date.issued | 2001-01 | eng |
dc.description | Text on PDF file displays a little blurry. | eng |
dc.description | Includes bibliographical references. | eng |
dc.description.abstract | This article challenges the conventional wisdom that the 1960s conglomerates were inefficient. I offer valuation results consistent with recent event-study evidence that markets typically rewarded diversifying acquisitions. Using new data, I compute industry-adjusted valuation, profitability, leverage, and investement ratios for 36 large, acquisitive conglomerates from 1966 to 1974. During the early 1970s, the conglomerates were less valuable and less profitable than stand-alone firms, favoring an agency explanation for unrelated diversification. In the 1960,s however, conglomerates were not valued at a discount. Evidence from acquisition histories suggests that conglomerate diversification may have added value by creating internal capital markets. | eng |
dc.identifier.citation | RAND Journal of Economics vol. 32, no. 4 (Winter 2001): 745-61. | eng |
dc.identifier.issn | 0741-6261 | eng |
dc.identifier.uri | http://hdl.handle.net/10355/153 | eng |
dc.language | English | eng |
dc.publisher | Blackwells | eng |
dc.relation.ispartofcollection | Agricultural Economics publications (MU) | eng |
dc.relation.ispartofcommunity | University of Missouri-Columbia. College of Agriculture, Food and Natural Resources. Division of Applied Social Sciences. Department of Agricultural Economics | eng |
dc.subject | acquisitions | eng |
dc.subject | conglomerates | eng |
dc.subject.lcsh | Conglomerate corporations | eng |
dc.subject.lcsh | Consolidation and merger of corporations | eng |
dc.title | Were the Acquisitive Conglomerates Ineffective? | eng |
dc.type | Article | eng |