The Diversification Effect on Heterogeneity of Investor Beliefs

摘要：

In the paper, we study the effect of multiple industry operations on the heterogeneity of investor beliefs. We find that diversification reduces the level of heterogeneous beliefs on a firms future prospects. We also provide evidence that the diversification effect on the heterogeneity of beliefs is unlikely to be driven by the endogeneity of a firms decision to diversify. Finally, we find that the excess level of heterogeneous beliefs on diversified firms relative to focused firms follows a pattern of mean-reverting. Our results contribute to the understanding about how corporate organization structure affects the heterogeneity of investor beliefs and firm values.

关键词： diversification heterogeneous beliefs

作者: YAN An ZHOU Qin

作者单位: Corresponding author. Associate Professor, Finance Area, Schools of Business,Fordham University, 113 Professor, School of Economics and Management, Southeast University, Nanjing,Jiangsu, China, 210096

会议类型: 国际会议

会议名称: The 3rd (2011) International Conference on Financial Risk and Corporate Finance Management(第三届(2011)金融风险与公司金融国际研讨会FRCFM 2011)

会议地点: 大连

会议语种:英文

页码: 67-74

在线出版日期: 2011-06-30（万方平台首次上网日期，不代表论文的发表时间）