form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …

valuations. We find that there is a diversification discount: The marketvalues financial conglomerates that engage in multiple … indicate that economies of scope arenot sufficiently large to produce a diversification premium …

associated with the merger. We call these transactions "liquidity mergers," since their main purpose is to reallocate liquidity …

Lifecycle theories of mergers and diversification predict that firms make acquisitions and diversify when their … being equally acquisitive but more so than middle-aged firms. Firms that go public during the merger/IPO wave of the 1990s …

Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous … variation in diversification is necessary in order to draw inferences about the causal effect. We examine changes in the within … investment, are negatively related to firm value. Thus diversification destroys value, consistent with the inefficient internal …

appliance markets most affected by the merger to markets where concentration changed much less or not at all. We estimate price …

industry merger and acquisition activity. All of these effects are stronger for smaller firms than for larger firms …

banks in individual EU countries help to explain the nature of cross-border merger activity. If they wish to protect …