00000caa a22000003i 4500 UP-1685594773862408759 Buklod 20210413115321.0 m | | ta 210413s2003 xx r |||| u|eng d 1655-1516 (iLib)UPBAG-00039735190 BAG rda eng ARTICLE-3083 Aquino, Rodolfo Q. author. Does corporate diversification create value? Rodolfo Q. Aquino. 2003. pages [103]-115 25 cm text rdacontent unmediated rdamedia volume rdacarrier Title was 'Philippine Review of Business and Economics' until 1979. Title changed to 'Philippine Review of Economics and Business' from 1980-2000, and again changed to 'Philippine Review of Economics' since 2001. Includes bibliographical references (pages 114-115) This study addresses the issue of whether the form of corporate diversification practiced in the Philippines, particularly that based on diversified family-based conglomerate and business groups, can create of destroy value. The study produces somewhat mixed results. Corporate diversification through the holding company route, perse, does not raise or reduce firm value as perceived by market investors. However, diversification into two unrelated business either via subsidiaries or internal divisions appears to add to firm value but any further diversification only subtracts value. Diversification through the route of interrelated business groups also appears to decrease value perceptions. These findings are robust with respect to the addition of variable found to have explanatory power on firm value such as consistency in dividend payout, asset growth, and industry grouping. In addition, value appears to be independent of capital structure and firm size. Diversification in industry Philippines. Business planning Philippines. Corporate reorganization Philippines. Philippine Review of Economics Vol. XL, No. 2 (December 2003), p. [103]-115. Request full-text access via UPB University Library through https://forms.gle/KZjBv7aRtY6jiL5E9 (viewed 04 April 2021) FI UPBAG UPBAG-MAIN ARTICLE-3083 Analytics