Tuesday, July 13, 2004

Do we have a new explanation of the conglomerate discount!!!!!!!

SSRN-Loyalty Based Portfolio Choice by Lauren Cohen


Are you loyal to your company? Your answer may depend on whether your company is a single division company or a conglomerate. As the University of Chicago's Lauren Cohen writes "Evidence from Social Psychology suggests that loyalty to the firm develops at the divisional level." Yeah yeah, so what does Social Psychology have to do with finance?

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