Does Geographic Dispersion Aect Firm Valuation?
We find that the geographic dispersion of a corporation aects its firm valuation. Firms with subsidiaries located in dierent regions of the United States experience a valuation discount of 6.2% after controlling for the impact of both global and industrial diversifications, and the valuation discount increases as firms expand their operations to dierent regions nationwide. Results show that firms with weak corporate governance tend to expand geographically, and these firms experience greater value discounts compared with their counterparts with good corporate governance. Overall, our results suggest that the geographic location of corporate activities is an essential component of corporate policies and has important market valuation implications.
Geographic Dispersion Firm valuation Corporate Governance
Wenlian Gao Lilian Ng Qinghai Wang
Sheldon B.Lubar School of Business Administration, University of Wisconsin-Milwaukee, Milwaukee, WI 53201-0742
国际会议
成都
英文
1-42
2007-07-09(万方平台首次上网日期,不代表论文的发表时间)