Table 1: Distribution of the Sample Firms Across Years and Across Number of Segments (Years

1993-2016)
Number of Segments
Year 2 3 4 5 6 7 8 9 10 Total
1993 495 315 145 63 21 4 2 2 2 1049
1994 500 329 139 55 20 6 0 2 2 1053
1995 499 296 129 42 15 9 1 1 2 994
1996 500 285 110 42 19 8 1 2 1 968
1997 490 277 111 41 18 5 1 1 1 945
1998 336 199 104 38 12 7 0 2 1 699
1999 191 132 56 29 14 2 0 0 0 424
2000 237 188 79 30 10 3 1 0 2 550
2001 238 188 89 39 10 3 1 1 0 569
2002 255 197 90 40 16 5 0 0 1 604
2003 241 190 95 47 19 1 0 0 0 593
2004 249 184 94 44 20 2 0 0 1 594
2005 246 169 80 39 19 4 1 1 0 559
2006 237 151 83 41 24 4 2 0 1 543
2007 231 153 66 47 15 4 1 2 0 519
2008 209 149 83 47 15 6 2 1 1 513
2009 208 148 79 35 16 4 2 1 2 495
2010 194 135 70 33 13 4 2 2 1 454
2011 194 132 74 42 16 6 3 2 1 470
2012 205 140 69 45 15 5 2 3 1 485
2013 207 142 71 49 16 2 1 0 1 489
2014 197 139 67 54 14 2 1 1 1 476
2015 200 141 70 60 12 4 1 0 0 488
2016 79 64 44 24 1 1 0 0 0 213
Total 6638 4443 2097 1026 370 101 25 24 22 14746

1
 Table 2: Descriptive Statistics for Initial Sample Data Set (Years 1993-2016)
Firms with 2 to 4 Segments
For the Smallest Segments Only For the Largest Segments Only
Gross Sales Own Other Gross Sales Own Other
Capital Cash Cash Capital Cash Cash
Expen- Flow Flow Expen- Flow Flow
diture diture
Mean 51.35 468.97 87.79 418.64 162.33 2563.10 359.32 168.78
99% 650.00 7005.00 1535.00 6192.00 2701.32 41077.30 5820.00 2458.00
95% 129.00 1800.30 308.64 1535.31 587.02 8351.00 1320.40 563.00
90% 55.00 897.90 157.30 788.55 266.76 4122.64 675.63 277.36
Median 2.47 65.90 8.00 62.53 13.33 399.23 49.37 16.19
10% 0.02 2.51 -0.91 0.71 0.33 20.59 0.65 -0.52
5% 0.00 0.80 -5.21 -1.13 0.10 10.21 -0.93 -4.29
1% 0.00 0.08 -51.50 -44.50 0.00 1.26 -35.13 -55.06

Firms with 5 or More Segments

For the Smallest Segments Only For the Largest Segments Only
Gross Sales Own Other Gross Sales Own Other
Capital Cash Cash Capital Cash Cash
Expen- Flow Flow Expen- Flow Flow
diture diture
Mean 183.45 974.24 258.58 3210.23 508.95 10545.40 1152.01 2003.83
99% 3990.96 8062.00 3680.10 36015.61 6852.75 115790.69 13185.00 26682.00
95% 489.00 4806.45 1048.00 14618.36 2406.00 45833.00 5094.00 9335.69
90% 246.00 2959.45 582.85 7718.00 1283.00 25440.00 2736.09 4719.00
Median 18.05 304.69 41.67 993.35 118.13 2988.25 389.71 442.18
10% 0.28 14.60 -16.00 127.80 8.53 440.75 37.41 35.92
5% 0.00 4.60 -110.00 54.68 2.94 204.57 7.13 8.02
1% 0.00 0.28 -594.34 -30.00 0.03 31.38 -285.64 -124.24

2
Table 3: Estimates of Investment Equations for Small and Large Segments (Years 1993-2016)

(1) (2) (3) (4)

2 to 4 (smallest) 5 or more (smallest) 2 to 4 (largest) 5 or more (largest)
Sales growth 0.00189 0.00105 0.0112 0.000322
(2.28) (2.22) (4.57) (0.14)
Own cash ow 0.0957 0.0618 0.123 0.171
(9.47) (2.20) (14.28) (7.82)
Other cash ow 0.00984 0.0101 0.0445 0.0202
(3.47) (2.50) (3.50) (1.32)
Segment's q 0.00457 -0.0000704 0.0146 0.00122
(4.62) (-0.08) (5.51) (0.55)
Observations 10681 2167 11837 2692
t statistics in parentheses

p < .1, p < 0.05, p < 0.01

Table 4: Estimates of Investment Equations for Multisegment Firms and Single-segment Firms
(Years 1993-2016)

(1) (2) (3) (4)

2 to 4 (smallest) 5 or more (smallest) 2 to 4 (largest) 5 or more (largest)
Sales growth 0.00295 -0.0000218 0.0103 -0.00164
(0.98) (-0.00) (3.53) (-0.32)
Own cash ow 0.0251 0.0101 0.0940 0.130
(5.57) (0.88) (18.49) (12.88)
Segment's q 0.0237 0.0150 0.0268 0.0179
(6.75) (2.00) (8.58) (3.51)
single_dummy -0.00277 -0.0159 0.00338 0.00275
(-2.42) (-5.81) (2.63) (0.95)
single_times_own_cf 0.0122 0.126 0.0123 0.0199
(2.01) (6.74) (1.64) (1.13)
Observations 21286 4318 24024 5380
t statistics in parentheses

p < .1, p < 0.05, p < 0.01

3
 Table 5: Other Regression Estimates For Small and Large Segments (Years 1993-2016)
2 to 4 Segments (smallest) Regression 1 Regression 2 Regression 3 Regression 4
Sales growth 0.00765 0.00171 -0.00283 0.00201
(1.84) (3.85) (-0.29) (2.37)
Own cash ow 0.0494 0.0386 0.0209 0.0937
(6.00) (5.40) (3.44) (9.26)
Other cash ow 0.0311 0.0106 0.152 0.00804
(3.10) (5.51) (10.00) (2.79)
Segment's q 0.0188 0.00304 0.0410 0.00470
(4.05) (4.18) (22.00) (4.75)
Observations 10320 10673 10333 9583

2 to 4 Segments (largest) Regression 1 Regression 2 Regression 3 Regression 4

Sales growth 0.0140 0.0104 0.0214 0.00986
(3.97) (6.29) (3.28) (3.93)
Own cash ow 0.115 0.0797 0.322 0.115
(14.00) (11.19) (29.44) (13.40)
Other cash ow 0.00835 0.0267 0.0127 0.0407
(1.48) (3.07) (2.41) (3.23)
Segment's q 0.0256 0.0158 0.0160 0.0149
(6.77) (7.83) (13.85) (5.60)
Observations 11308 11836 11465 10551

5 or More Segments (smallest) Regression 1 Regression 2 Regression 3 Regression 4

Sales growth -0.00236 0.000583 -0.135 0.00112
(-0.37) (2.66) (-2.18) (2.37)
Own cash ow 0.0300 0.0601 -0.0869 0.0413
(1.30) (3.43) (-3.35) (1.44)
Other cash ow 0.0508 0.0106 0.450 0.0110
(1.32) (4.54) (3.58) (2.76)
Segment's q 0.00536 0.000536 0.0715 0.0000217
(0.55) (1.11) (7.29) (0.02)
Observations 2135 2167 2065 1979

5 or More Segments (largest) Regression 1 Regression 2 Regression 3 Regression 4

Sales growth 0.000364 0.00336 -0.0166 -0.000303
(0.06) (2.63) (-1.90) (-0.12)
Own cash ow 0.144 0.129 0.365 0.178
(9.01) (8.93) (23.01) (7.44)
Other cash ow 0.0174 0.0170 0.0357 0.0143
(0.96) (1.91) (3.77) (0.86)
Segment's q 0.00574 0.00320 0.00636 0.00173
(0.94) (1.95) (3.79) (0.73)
Observations 2665 2692 2649 2461
t statistics in parentheses
p < .1, p < 0.05, p < 0.01
4

Table 6: Estimates Of Investment Equations Allowing For a Dierent Coecient for the Cash
Flow of Other Segments For Segments with the Highest Q in the Firm and using the q of the
Other Segments as Explanatory Variables (Years 1993-2016)

(1) (2) (3) (4)

2 to 4 (smallest) 5 or more (smallest) 2 to 4 (largest) 5 or more (largest)
Sales growth 0.00187 0.00102 0.0112 0.0000616
(2.25) (2.08) (4.56) (0.03)
Own cash ow 0.0941 0.0678 0.122 0.179
(6.98) (2.14) (10.33) (7.67)
Other cash ow 0.01000 0.00996 0.0439 0.0205
(3.51) (2.43) (3.43) (1.33)
Segment's q 0.00552 -0.000126 0.0170 0.00212
(3.89) (-0.11) (4.95) (0.79)
dummy*Own c.f. 0.00223 -0.0198 0.00172 -0.0284
(0.14) (-0.40) (0.13) (-1.20)
dummy*Seg. q -0.000840 -0.000157 -0.00207 0.0000885
(-1.24) (-0.22) (-1.11) (0.06)
other 1's q 0.000255 0.000243 -0.00129 -0.000636
(0.35) (0.42) (-0.78) (-0.71)
other 2's q -0.0000768 -0.0000203 0.00143 0.000142
(-0.10) (-0.04) (0.95) (0.17)
other 3's q -0.00187 -0.00000153 -0.00116 -0.0000238
(-2.15) (-0.00) (-0.62) (-0.02)
other 4's q 0.000465 0.000102
(0.84) (0.09)
other 5's q -0.0000525 -0.0000366
(-0.07) (-0.03)
other 6's q -0.000392 -0.000471
(-0.61) (-0.22)
other 7's q -0.00338 -0.00774
(-1.17) (-1.72)
Observations 10681 2167 11837 2692
F-stat 2.4007 0.3282 0.4676 0.4960
P-value 0.0658 0.9414 0.7049 0.8381
t statistics in parentheses. F-stat and p-value for test of joint signicance of other segment's q's

p < .1, p < 0.05, p < 0.01
5