主 题：Distributional Effect of Corporate Diversification
主讲人：Pro.Zhijie Xiao, Boston College
Zhijie Xiao received his B.A (1988) and M.A. (1991) in economics and mathematics from Renmin University, M.Ph. (1996) and Ph.D. (1997) in economics from Yale University. He joined the faculty in the University of Illinois (Urbana-Champaign) in 1997. In 2004, he joined Boston College as a professor of economics.
Zhijie Xiao received the National Prize of Science and Technology Progress in China in 1993. He also received the Multa Scripsit Award in Econometric Theory in 2002, and the Plura Scripsit Awardin Econometric Theory in 2013. He is a Fellow of Journal of Econometrics. Zhijie Xiao has been associate editor of JASA, Econometrics Journal, and is now associate editor of Econometric Theory and co-editor of China Journal of Economic Research. Zhijie Xiao has published over 70 articles on various aspects of econometrics and empirical finance, including time series, quantile regression, operational research, semiparametric and nonparametric models.
Corporate diversification is one of the most debated topics in finance over the past two decades. While it is widely believed that there exists a discount in the stock market valuation of conglomerate firms, the extant research based on least squares methods points to different directions. We argue that the existing empirical analyses ignore some important data features, especially cross sectional heterogeneity, predicted by both theories and casual observations on corporate diversification, and thus cannot provide a complete picture of the diversification discount. Using a quantile regression analysis on U.S. public firms, we investigate the importance of heterogeneity of diversification as well as other firm characteristics. Estimated quantile treatment effects exhibit substantial heterogeneity as predicted. Thus mean impacts miss a great deal. We also tie back differences in the effect of diversification in high-valued and low-valued firms to observable agency characteristics; the most interesting finding is that CEOs seem to play vastly different roles in high-valued and low-valued firms. We conclude that the effect of diversification is likely more varied and more extensive than has been recognized.