Certain regulatory changes (suchas antitrust and anti laws) create incentives or disincentive for diversification at -
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Certain regulatory changes (suchas antitrust and anti laws) create incentives or disincentive for diversification are value neutral.
- Incentives for divergence come from both the external and the internal climate.
- External regulations include competition and tax rules, while internal regulations cover low output unpredictable potential cash flows and a reduction of risk firms
- In general firms have value neutral incentives as well as value creating incentives for diversification.
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