IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v35y1989i8p1004-1013.html
   My bibliography  Save this article

On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification

Author

Listed:
  • Thomas E. Conine, Jr.

    (School of Business, Fairfield University, Fairfield, Connecticut 06430-7524)

  • Oscar W. Jensen

    (School of Business, Fairfield University, Fairfield, Connecticut 06430-7524)

  • Maurry Tamarkin

    (School of Management, Clark University, Worcester, Massachusetts 01610)

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.

Suggested Citation

  • Thomas E. Conine, Jr. & Oscar W. Jensen & Maurry Tamarkin, 1989. "On Optimal Production and the Market to Book Ratio Given Limited Shareholder Diversification," Management Science, INFORMS, vol. 35(8), pages 1004-1013, August.
    • Handle: RePEc:inm:ormnsc:v:35:y:1989:i:8:p:1004-1013
    DOI: 10.1287/mnsc.35.8.1004
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.35.8.1004
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.35.8.1004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sankaran, Jayaram K. & Patil, Ajay A., 1999. "On the optimal selection of portfolios under limited diversification," Journal of Banking & Finance, Elsevier, vol. 23(11), pages 1655-1666, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:35:y:1989:i:8:p:1004-1013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.