Does corporate diversification destroy value?

• 成果类型: Article
• 署名作者: Graham, JR; Lemmon, ML; Wolf, JG
• 署名单位: Duke University; Utah System of Higher Education; University of Utah; Clemson University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/1540-6261.00439
• 发表日期: 2002
• 页码: 695-720
• 关键词: CONGLOMERATE MERGER WAVE; acquisitions; performance

摘要

We analyze several hundred firms that expand via acquisition and/or increase their number of business segments. The combined market reaction to acquisition announcements is positive but acquiring firm excess values decline after the diversifying event. Much of the excess value reduction occurs because our sample firms acquire already discounted business units, and not because diversifying destroys value. This implies that the standard assumption that conglomerate divisions can be benchmarked to typical stand-alone firms should be carefully reconsidered. We also show that excess value does not decline when firms increase their number of business segments because of pure reporting changes.