Prof. Vaaler Comments on Corporate Holding Companies and Firm Valuation

Professor Paul Vaaler discussed Google's recent decision to re-organize its various businesses in separate divisions under a multi-business corporate holding company called Alphabet. Google stock increased with this announcement. Re-organization into a multi-business corporation with separate lines of business allows such firms to provide separate information assets, sales, income and other important developments (e.g., R&D expenditure) by line of business so that shareholders can better understand where value is generated. Vaaler comments weekly on current business issues on WCCO Radio's Dave Lee Show.