| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP1843 |
| DP1843 Large Scale Fiscal Retrenchments: Long-Run Lessons from the Stability Pact | |
| Andrew Hughes Hallett; Peter McAdam | |
| 发表日期 | 1998-03-31 |
| 出版年 | 1998 |
| 语种 | 英语 |
| 摘要 | In a simple model of capital budgeting in a diversified firm where headquarters have limited power, we show that funds are allocated towards the most inefficient divisions. The distortion is greater, when the investment oppotunities of the firm?s divisions are more diverse. We test these implications on a panel of diversified firms in the United States during the period 1979?93. We find that i) diversified firms mis-allocate investment funds; ii) the extent of mis-allocation is positively related to the diversity of investment opportunities across divisions; and iii) the discount, at which these diversified firms trade, is positively related to the extent of the investment mis-allocation and to the diversity of investment opportunities across divisions. |
| 主题 | Financial Economics |
| 关键词 | Capital budgeting Conglomerate Diversification |
| URL | https://cepr.org/publications/dp1843 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530983 |
| 推荐引用方式 GB/T 7714 | Andrew Hughes Hallett,Peter McAdam. DP1843 Large Scale Fiscal Retrenchments: Long-Run Lessons from the Stability Pact. 1998. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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