Using a sample of over 1000 firms from seven emerging markets in 1995, we find that diversified firms trade at a discount of approximately 7% compared to single-segment firms. Diversified firms are also less profitable than single-segment firms, but lower profitability only explains part of the...

This paper documents a substantial intertemporal variation in the abnormal returns of U.S. companies acquired by foreign firms over the 1979-1988 period. Returns decrease after 1980, when the 1981 Economic Reform Tax Act was passed, and increase after 1986, when the Tax Reform Act went into...