Valuation effects of global diversification

摘要: This paper examines the effect of global diversification on firm value using a data set US firms from 1994 to 2002. We document that enhances value. Specifically, we find Tobin's q, our proxy for value, increases with foreign sales (measured as fraction firm's total sales), even after control well-known determinants In contrast, no such evidence industrial diversification. both financial and real effects driving enhancement Furthermore, valuation benefits are higher if diversifies into countries creditor rights stronger than those United States. Our results also robust controlling endogenous choice diversify across or industries. study is anchored by theories dimensions diversification, support theories. Overall, provide unifying view driven dimensions.