LEADER 00000nam  2200349   4500 
001    AAI3244658 
005    20071112134954.5 
008    071112s2006                        eng d 
035    (UMI)AAI3244658 
040    UMI|cUMI 
100 1  Dorsey, Sarah Gayle 
245 10 Measuring the impact of integration and diversification on
       firm value in the food industry 
300    122 p 
500    Source: Dissertation Abstracts International, Volume: 67-
       12, Section: A, page: 4635 
500    Adviser:  Michael Boland 
502    Thesis (Ph.D.)--Kansas State University, 2006 
520    The strategic decision a firm makes in determining where 
       to set its vertical and horizontal boundaries is a widely 
       discussed topic in the literature. This strategic decision
       can include vertical integration, horizontal integration 
       and diversification outside of the food economy. These 
       activities can impact a firm in different ways 
520    The objective of this research is to determine whether 
       food economy firms pursuing diversification or integration
       are valued lower or higher as a whole than the sum of 
       their individual segments. This is commonly referred to as
       a premium or discount. The hypothesis is that a premium 
       exists for food economy firms that pursue integration 
       activities and a discount exists for food economy firms 
       that pursue diversification activities. Four separate food
       economy sectors are used in the analysis: food processing,
       wholesale grocery, retail supermarkets, and restaurants 
520    To determine whether a premium or discount exists for 
       integration or diversification, an excess value 
       calculation method is used which compares the actual value
       of a firm to the imputed value of all of the segments of a
       firm. This excess value is then used in a seemingly 
       unrelated regression (SUR) framework to determine how 
       certain firm characteristics influence firm value. But, 
       these firm effects may both lead a firm to diversify or 
       integrate and affect firm value. This would incorrectly 
       attribute a premium or discount to the diversification or 
       integration itself and not the underlying firm 
       characteristics that caused the firm to pursue such a 
       strategy. To account for these underlying firm and 
       industry characteristics, Heckman's two-stage procedure is
       used to control for the self-selection of firms that 
520    The SUR results indicate that the hypothesis that 
       integration leads to a premium for food economy firms 
       cannot be rejected for the restaurant sector and for the 
       processing sector except in the case of vertical 
       integration into retail. The endogeneity tests indicate 
       that, in most cases, the diversification or integration 
       decisions are endogenous meaning that the firm effects 
       that cause firms to diversify or integrate are positively 
       or negatively correlated with firm value. In the cases of 
       vertical integration into wholesale in the processing and 
       restaurant sectors and unrelated diversification in the 
       restaurant sector, including a self selection parameter 
       makes the premiums found using SUR become discounts 
590    School code: 0100 
590    DDC 
650  4 Economics, Agricultural 
650  4 Economics, Commerce-Business 
690    0503 
690    0505 
710 20 Kansas State University 
773 0  |tDissertation Abstracts International|g67-12A 
856 40 |uhttp://pqdd.sinica.edu.tw/twdaoapp/servlet/