Diversified firms often trade at a discount with respect to their focused counterparts. The literature has tried to explain the apparent misallocation of resources with lobbying activities or power struggles. We show that diversification can destroy value even when resources are efficiently...

Mehr Leistung, geringere Kosten - mit diesem Ziel führen Unternehmen Center-Organisationen ein. Neue organisatorische Einheiten übernehmen bereichsübergreifend Aufgaben. Wie, das zeigen u.a. Beispiele aus den Unternehmen AXA, Bayer, Dresdner Bank, Post AG, Siemens, RWE und IBM

Diversified firms often trade at a discount with respect to their focused counterparts. The literature has tried to explain the apparent misallocation of resources with lobbying activities or power struggles. We show that diversification can destroy value even when resources are efficiently...