Handbook of Corporate Finance Empirical Corporate Finance Volume 1

454 V. Maksimovic and G. Phillips δ>0, indicating that belonging to conglomerate segments reduces a segment’s financ- ing con ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 455 Lamont’s (1997)interpretation has been queried bySchnure (1997). Schn ...

456 V. Maksimovic and G. Phillips firms. The former have no history of successful drug development and are typically focused on ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 457 He also computes the firm’s imputed use of external capital: for each ...

458 V. Maksimovic and G. Phillips issue equities after a run-up) is measures using theLang and Stulz (1994)andBerger and Ofek (1 ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 459 by underinvesting in divisions with better growth opportunities and o ...

460 V. Maksimovic and G. Phillips RSZ run the following regression equation separately for the segments in each cell of the clas ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 461 By contrast,Scharfstein and Stein’s (2000)model of intra-firm bargain ...

462 V. Maksimovic and G. Phillips Fig. 6. Productivity ordered by segment size. Segment productivity estimated from LRD plant-le ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 463 waste resources by diversifying into industries in which they do not ...

464 V. Maksimovic and G. Phillips opportunity cost of staying in the industry rather than selling out to a high productiv- ity p ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 465 and a control subsample of “regular” conglomerates that do not reduce ...

466 V. Maksimovic and G. Phillips 4.6. Mergers and acquisitions, divestitures and spinoffs 4.6.1. Diversified firms and the mark ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 467 Ta b l e 2 A Total Mergers and acquisitions Asset sales Full segment ...

468 V. Maksimovic and G. Phillips Ta b l e 2 B Sample of firms Total Mergers and takeovers Asset sales Full division Partial div ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 469 Schoar (2002)also used the LRD plant-level data to examine productivi ...

470 V. Maksimovic and G. Phillips The sensitivity of Tobin’sqcaptures the idea that the more efficient a firm is, the more it sh ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 471 were misallocating resources prior to the spinoff. Using three-differ ...

472 V. Maksimovic and G. Phillips On balance, industry case studies and econometric analyses of firm growth suggest that intern ...

Ch. 8: Conglomerate Firms and Internal Capital Markets 473 assume that all firms in the industry are single-segment firms that p ...