We take a broad product markets approach to examine whether pooled purchasing is a source of value creation in diversifying acquisitions. We find that our proxies for the merging firms' change in purchasing concentration are positively related to the combined wealth effect of merging firms,...

We document a strong decline in corporate-diversification activity since the late 1970's, and we develop a dynamic model that explains this pattern, both qualitatively and quantitatively. The key feature of the model is that synergies endogenously decline with technological specialization,...

Once a preferred strategy, diversification has gradually been deinstitutionalized in the United States over the past several decades. We argue that changes that occurred in a closely related domain — graduate business education — are important in understanding variation in de-diversification...

This note shows that an investor who does not hold positive amounts of all available assets is eventually overtaken by a completely diversified rival investor.

In view of the growing internationalisation and liberalisation of the Indian economy, the corporate environment of the country has been passing through intense competition especially in the last two decades paving the way to survival of the fittest. In such a crucial juncture, even giants in the...