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Essays on Corporate Vertical Integration.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	Essays on Corporate Vertical Integration./
Author:	Li, He.
Description:	1 online resource (129 pages)
Notes:	Source: Dissertation Abstracts International, Volume: 78-11(E), Section: A.
Contained By:	Dissertation Abstracts International78-11A(E).
Subject:	Finance. -
Online resource:	click for full text (PQDT)
ISBN:	9781369887136

Essays on Corporate Vertical Integration.
Li, He.

Essays on Corporate Vertical Integration. - 1 online resource (129 pages)

Source: Dissertation Abstracts International, Volume: 78-11(E), Section: A.

Thesis (Ph.D.)

Includes bibliographical references

My dissertation examines the corporate diversification strategy of vertical integration. Vertical integration refers to the organizational structure in which divisions within the firm are integrated along the supply chain. I examine the advantages and disadvantages associated with vertical integration in two chapters. In Chapter 2, I model how inter-divisional spillover effects mitigate internal capital market (ICM) inefficiencies. The model shows that the spillover effect helps align the objectives of division managers and the objective of the CEO and the firm, and thus facilitates efficient capital allocation at equilibrium. Empirically, I measure the size of the spillover effect by the degree of vertical integration of the firm. I present evidence that higher level of vertical integration is associated with more efficient internal capital markets. In Chapter 3, I show that vertically integrated firms are relatively lower valued firms. Using a vertical integration coefficient (VIC), constructed with Industry Benchmark Input-Output accounts data, provided by the Bureau of Economic Analysis (BEA), I find that compared to laterally integrated firms, vertical integration is associated with a significant firm value discount of approximately 1.56%. Even more strikingly, compared to firms located in the lowest VIC quartile, firms located in the highest VIC quartile exhibit a significant larger discount of approximately 3.34%. I find that there are two important sources of this additional discount: lower profit margins and more cross-subsidization.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2018

Mode of access: World Wide Web

ISBN: 9781369887136Subjects--Topical Terms:

559073
Finance.
Index Terms--Genre/Form:

554714
Electronic books.

Essays on Corporate Vertical Integration.
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035 $a (MiAaPQ)utep:12338
035 $a AAI10273085
040 $a MiAaPQ $b eng $c MiAaPQ
099 $a TUL $f hyy $c available through World Wide Web
100 1 $a Li, He. $3 1182437
245 1 0 $a Essays on Corporate Vertical Integration.
264 0 $c 2017
300 $a 1 online resource (129 pages)
336 $a text $b txt $2 rdacontent
337 $a computer $b c $2 rdamedia
338 $a online resource $b cr $2 rdacarrier
500 $a Source: Dissertation Abstracts International, Volume: 78-11(E), Section: A.
500 $a Adviser: Erik Devos.
502 $a Thesis (Ph.D.) $c The University of Texas at El Paso $d 2017.
504 $a Includes bibliographical references
520 $a My dissertation examines the corporate diversification strategy of vertical integration. Vertical integration refers to the organizational structure in which divisions within the firm are integrated along the supply chain. I examine the advantages and disadvantages associated with vertical integration in two chapters. In Chapter 2, I model how inter-divisional spillover effects mitigate internal capital market (ICM) inefficiencies. The model shows that the spillover effect helps align the objectives of division managers and the objective of the CEO and the firm, and thus facilitates efficient capital allocation at equilibrium. Empirically, I measure the size of the spillover effect by the degree of vertical integration of the firm. I present evidence that higher level of vertical integration is associated with more efficient internal capital markets. In Chapter 3, I show that vertically integrated firms are relatively lower valued firms. Using a vertical integration coefficient (VIC), constructed with Industry Benchmark Input-Output accounts data, provided by the Bureau of Economic Analysis (BEA), I find that compared to laterally integrated firms, vertical integration is associated with a significant firm value discount of approximately 1.56%. Even more strikingly, compared to firms located in the lowest VIC quartile, firms located in the highest VIC quartile exhibit a significant larger discount of approximately 3.34%. I find that there are two important sources of this additional discount: lower profit margins and more cross-subsidization.
533 $a Electronic reproduction. $b Ann Arbor, Mich. : $c ProQuest, $d 2018
538 $a Mode of access: World Wide Web
650 4 $a Finance. $3 559073
655 7 $a Electronic books. $2 local $3 554714
690 $a 0508
710 2 $a ProQuest Information and Learning Co. $3 1178819
710 2 $a The University of Texas at El Paso. $b Economics. $3 1182438
773 0 $t Dissertation Abstracts International $g 78-11A(E).
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10273085 $z click for full text (PQDT)