The commonly accepted explanation in early studies to diversification discount is that diversification destroys value because of operational inefficiency. Such argument neglects the real options value incorporated in the value measures. It cannot explain why a firm diversifies if diversification...

Assesses the effect of the introduction of the euro on capital markets, noting “explosive growth” in the corporate bond market and a rising demand for junk bonds. Believes that equities are funamentally strong, although foreign investors have suffered from falling euro values, and sees some...