Document Type
Article
Article Version
Publisher's PDF
Publication Date
8-1989
Abstract
Our purpose is to examine a firm's optimal output decision and valuation when its shareholders hold a limited number of risky assets. The primary theoretical result indicates that the market-to-book ratio is a function of the degree of shareholder diversification. Our theory suggests a negative relationship between a firm's market-to-book ratio and shareholder diversification.
Publication Title
Management Science
Repository Citation
Conine, Thomas; Jensen, Oscar W.; and Tamarkin, Maurry, "On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification" (1989). Business Faculty Publications. 3.
https://digitalcommons.fairfield.edu/business-facultypubs/3
Published Citation
Conine, Thomas, Oscar W. Jensen, and Maurry Tamarkin. "On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification." Management Science 35.8 (Aug 1989): 1004-1013.
DOI
10.1287/mnsc.35.8.1004
Peer Reviewed
