Article
On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification
Management Science
Document Type
Article
Article Version
Publisher's PDF
Publication Date
8-1-1989
Disciplines
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.
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
Citation Information
Thomas Conine, Oscar W. Jensen and Maurry Tamarkin. "On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification" Management Science Vol. 35 Iss. 8 (1989) Available at: http://works.bepress.com/thomas_conine/1/