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Cited by 744

The DOI matches its Crossref record; 25 of the 25 references it cites were found in a registry or an index.

Effects of Corporate Diversification on Productivity

Schoar, Antoinette·2002·The Journal of Finance
DOI 10.1111/1540-6261.00500
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Abstract

Using plant‐level observations from the Longitudinal Research Database I show that conglomerates are more productive than stand‐alone firms at a given point in time. Dynamically, however, firms that diversify experience a net reduction in productivity. While the acquired plants increase productivity, incumbent plants suffer. Moreover, stock prices track firm productivity and this tracking is equally strong for diversified and stand‐alone firms. Therefore, lower transparency of conglomerates is unlikely to explain the discrepancy between productivity and stock prices on average. Finally, I offer some evidence that this discrepancy may arise because conglomerates dissipate rents in the form of higher wages.

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Metadata

Authors
Schoar, A.
Venue
The Journal of Finance
Publisher
Wiley
Published
2002-12
Volume
57
Issue
6
Pages
2379-2403
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/1540-6261.00500
OpenAlex
W2124604198
Cited by
744
References
25
FWCI
89.97
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Effects of Corporate Diversification on Productivity. https://app.cochat.ai/papers/10.1111/1540-6261.00500
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Schoar, A. (2002). Effects of Corporate Diversification on Productivity. The Journal of Finance. https://doi.org/10.1111/1540-6261.00500

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.