Does Corporate Diversification Reduce Firm Risk? Evidence from Diversifying Acquisitions

被引：6
|
作者：
Anderson, Randy I. [1 ]
Stowe, John D. [2 ]
Xing, Xuejing [3 ]
机构：
[1] Univ Cent Florida, Dept Finance, Orlando, FL 32816 USA
[2] Ohio Univ, Dept Finance, Athens, OH 45701 USA
[3] Univ Alabama, Dept Accounting & Finance, BAB 315, Huntsville, AL 35899 USA
来源：
REVIEW OF PACIFIC BASIN FINANCIAL MARKETS AND POLICIES | 2011年 / 14卷 / 03期
关键词：
Corporate diversification; systematic risk; firm-specific risk; total risk; acquisitions;
D O I：
10.1142/S0219091511002214
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
The main purpose of this paper is to investigate empirically whether corporate diversification reduces the risk of the diversifying firm. We investigate this issue using a sample of diversifying acquisitions and various risk measures. We find that corporate diversification tends to decrease the risk of some firms but increase the risk of many others. On average corporate diversification does not lower firm risk. These findings call into question the notion that corporate diversification strictly reduces firm risk.
引用
收藏
页码：485 / 504
页数：20
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