Beneish, Messod D.; Jansen, Ivo Ph.; Lewis, Melissa F.; … - In: Journal of Financial Economics 89 (2008) 1, pp. 136-157
While it is well established that diversifying acquisitions by large, cash-rich firms destroy shareholder wealth, we document positive abnormal returns to such acquisitions in the tobacco industry. We show that these abnormal returns are associated with proxies for lower expected expropriation...