[-] Show simple item record

dc.contributor.authorKlein, Peter G.eng
dc.date.issued2001-01eng
dc.descriptionText on PDF file displays a little blurry.eng
dc.descriptionIncludes bibliographical references.eng
dc.description.abstractThis 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.citationRAND Journal of Economics vol. 32, no. 4 (Winter 2001): 745-61.eng
dc.identifier.issn0741-6261eng
dc.identifier.urihttp://hdl.handle.net/10355/153eng
dc.languageEnglisheng
dc.publisherBlackwellseng
dc.relation.ispartofcollectionAgricultural Economics publications (MU)eng
dc.relation.ispartofcommunityUniversity of Missouri-Columbia. College of Agriculture, Food and Natural Resources. Division of Applied Social Sciences. Department of Agricultural Economicseng
dc.subjectacquisitionseng
dc.subjectconglomerateseng
dc.subject.lcshConglomerate corporationseng
dc.subject.lcshConsolidation and merger of corporationseng
dc.titleWere the Acquisitive Conglomerates Ineffective?eng
dc.typeArticleeng


Files in this item

[PDF]

This item appears in the following Collection(s)

[-] Show simple item record