The inefficiency of internal capital markets: another part of the diversification discount ?

SSRN-Corporate Diversification and Internal Capital Markets: Evidence from the Turkish Business Groups by Halit Gonenc, Ozgur Berk Kan, Ece Karadagli:

Gonenc, Kan, and Karadagli make use of an interesting data set to give more confirmation to the view that external capital markets are more efficient than internal capital markets. They "compare the performance of firms affiliated with