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Corporate Diversification Effect on Firm Value (Unilever Group Case Study)

Author

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  • Varvara Nazarova

    (National Research University Higher School of Economics)

Abstract

This article deals with an analysis of the M&A strategy utilized by Unilever Group, as well as with issues relating to identifying the factors defining the value of a diversified company. This article includes an estimation of the ef- fectiveness of Unilever Group’s mergers and acquisitions strategy, aimed at creating the optimum business portfolio within the diversified corporate struc- ture (company) by how it affects value of the company. The general hypothesis assumes that diversification does not have a destructive effect on the value of an international multi-business company that builds its portfolio based on the success of certain brands and business areas.

Suggested Citation

  • Varvara Nazarova, 2015. "Corporate Diversification Effect on Firm Value (Unilever Group Case Study)," Annals of Economics and Finance, Society for AEF, vol. 16(1), pages 173-198, May.
    • Handle: RePEc:cuf:journl:y:2015:v:16:i:1:nazarova
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    References listed on IDEAS

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    1. Ginevičius Romualdas, 2023. "Improving the assessment of the diversification of construction companies," Engineering Management in Production and Services, Sciendo, vol. 15(2), pages 46-54, June.

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    More about this item

    Keywords

    Company value; Diversified company; Merger and acquisition transactions; Strategy effectiveness; Expected rate of return on invested capital;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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