December 2008
Intermediate to advanced
520 pages
43h 42m
English
Vojislav Maksimovicvmax@rhsmith.umd.edu Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA
Gordon Phillipsgphillips@rhsmith.umd.edu Robert H. Smith School of Business and NBER, University of Maryland, College Park, MD 20742, USA
Conglomerate firm production represents more than 50 percent of production in the United States. Given the size of production by conglomerate firms, understanding the costs and benefits of this form of organization has important implications. Several studies have shown that there exists a discount in stock market value of conglomerate firms relative to single-segment focused firms. This discount represents an economically ...