RT info:eu-repo/semantics/article
T1 Are Real Options a missing piece in the Diversification-Value Puzzle?
A1 Andrés Alonso, Pablo de
A1 Fuente Herrero, Gabriel de la
A1 Velasco González, María Del Pilar
K1 Empresas-Finanzas
K1 Corporate Finance
K1 Corporate diversification
K1 Firm value
K1 Growth opportunities
K1 GMM
K1 Mediating effect
K1 Diversificación corporativa
K1 Valor de la empresa
K1 Oportunidades de crecimiento
K1 Efecto mediación
AB 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.
PB Elsevier
SN 1057-5219
YR 2016
FD 2016
LK http://uvadoc.uva.es/handle/10324/27095
UL http://uvadoc.uva.es/handle/10324/27095
LA eng
NO International Review of Financial Analysis 48 (2016) 261–271
NO Producción Científica
DS UVaDOC
RD 23-abr-2024