We study the conglomerate discount from a novel perspective. We argue that the discount – measured in terms of Tobin's Q – far from being a sign of lower value is, instead, a sign of higher value for the conglomerate. This can be explained as conglomerates being less financially constrained...

We study how product market competition affects the firm's ownership by international and domestic investors and its stock performance. We argue that in the presence of local bias domestic investors tilt their portfolios towards domestic stocks that offer lower exposure to country-specific...