|Author Name||OKUBO Toshihiro (Keio University) / Kirill BORUSYAK (Harvard University)|
|Creation Date/NO.||January 2016 16-E-001|
|Research Project||Historical Evaluation of Industrial Policies|
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Are diversified firms mere collections of independent assets, or is there anything that glues together different businesses? We explore this question by looking at segment level growth of multi-segment (i.e., producing in several 6-digit industries at the same time) manufacturing firms in Japan. We find substantial co-movement between such segments and show that it can be driven by plant-wide but not firm-wide shocks. Our findings suggest that inputs that are shared firm-wide, such as brand and organizational routines, are not too important for production.