Why Investors Sometimes Value Size and Diversification: The Internalization Theory of Synergy.

For most firms, size and diversification are correlated with lower value. However, for firms possessing substantial information-based asset, geographical diversification, line of business diversification, and growth in general, add value. This is consistent with information-based assets being a critical prerequisite for synergy, as postulated in internalization theories of synergy.

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Year of publication:	1997
Authors:	Morck, R. ; Yeung, B.
Institutions:	Research Seminar in International Economics, University of Michigan
Subject:	ENTERPRISES \| SYNERGY \| INVESTMENTS

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	40 pages
Classification:	O10 - Economic Development. General ; O16 - Financial Markets; Saving and Capital Investment ; F23 - Multinational Firms; International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005734410