The Conglomerate Discount in Germany and the Relationship to Corporate Governance

39 Pages Posted: 19 Dec 2005

See all articles by Christian Weiner

Christian Weiner

Humboldt University of Berlin - School of Business and Economics

Date Written: December 14, 2005

Abstract

This paper documents the conglomerate discount for all available German firms and the DAX 30 firms in detail. It shows a moderate discount of about 0.06 based on German comparable firms and of about 0.20 for a combined sample of German and European peer groups. I further examine the relationship between the discount and industry concentration as well as uncertainty of valuation. Finally, I document that corporate governance behavior affects the conglomerate discount.

Keywords: conglomerate discount, corporate governance

JEL Classification: G31, G32, G34

Suggested Citation

Weiner, Christian, The Conglomerate Discount in Germany and the Relationship to Corporate Governance (December 14, 2005). Available at SSRN: https://ssrn.com/abstract=871030 or http://dx.doi.org/10.2139/ssrn.871030

Christian Weiner (Contact Author)

Humboldt University of Berlin - School of Business and Economics ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

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