Firm Complexity and Limits to Arbitrage

58 Pages Posted: 22 Jun 2020 Last revised: 7 Jul 2020

See all articles by Alexander Barinov

Alexander Barinov

University of California Riverside

Date Written: July 7, 2020


Several important anomalies are stronger for more complex firms. Despite conglomerates being on average larger and more liquid than single-segment firms, anomalies are stronger for conglomerates. In the conglomerates-only sub-sample, anomalies are stronger for conglomerates with more between-segments difference in market-to-book and operating leverage.

Keywords: conglomerates, anomalies, mispricing, limits to arbitrage, complexity

JEL Classification: G12, G14, G34

Suggested Citation

Barinov, Alexander, Firm Complexity and Limits to Arbitrage (July 7, 2020). Available at SSRN: or

Alexander Barinov (Contact Author)

University of California Riverside ( email )

900 University Ave.
Anderson Hall
Riverside, CA 92521
United States
585-698-7726 (Phone)


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