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Can Corporate Diversification Promote Firm Value? A Survey

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  • Dey, Tania
  • Banerjee, Rajabrata

Abstract

This paper performs a rigorous survey of existing measures of diversification and fills a number of missing gaps between the theoretical and empirical literature surveyed by previous authors. In addition, the study outlines the areas where future work is possible and in which direction researchers may advance their thoughts. A detailed discussion on the various methodologies employed by earlier researchers and their findings are presented. This survey indicates that there is further scope for development of new theories and the empirical literature suggests that there is scope for development of new measures of diversification.

Suggested Citation

  • Dey, Tania & Banerjee, Rajabrata, 2011. "Can Corporate Diversification Promote Firm Value? A Survey," MPRA Paper 28928, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28928
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    File URL: https://mpra.ub.uni-muenchen.de/28928/1/MPRA_paper_28928.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Duc Nam Phung & Anil V. Mishra, 2016. "Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 63-98, March.
    3. Elif Akben Selcuk & Halil Kiymaz, 2015. "The Impact Of Diversifying Acquisitions On Shareholder Wealth: Evidence From Turkish Acquirers," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(3), pages 19-32.

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    More about this item

    Keywords

    corporate diversification; firm valuation; discount; premium;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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