会议专题

Does Geographic Dispersion A ect Firm Valuation?

We find that the geographic dispersion of a corporation a ects its firm valuation. Firms with subsidiaries located in di erent 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 di erent 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

2007年中国金融国际年会

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)