Does Diversification Cause the "Diversification Discount"?
利用倾向得分匹配等因果推断方法，重新检验多元化公司是否真的存在折价。结果发现，在更可比的公司基准下，折价消失甚至转为溢价。
I examine whether the discount of diversified firms can actually be attributed to diversification itself, using recent econometric developments about causal inference. The value effect of diversification is unbiasedly estimated by matching diversified and specialized firms on the propensity score––the predicted values from a probit model of the propensity to diversify. I apply this method on a sample of diversified firms that trade at a significant mean and median discount relative to specialized firms of similar size and industry. I find that, when a more comparable benchmark based on propensity scores is used, the diversification discount as such disappears or even turns into a premium.