Is More Less? The Impact of M&A and Diversification: Evidence from 2000-2010

v Introduction 1 Chapter 1: Overview of Mergers and Acquisitions 1.1: What is M&A? 4 1.2: M&A as Firm Strategies 5 1.2.1: Corporate Synergy 5 1.2.2: Market Correction Mechanism 8 1.2.3: Market Power 11 1.2.4: “Good Buy” and Stakeholder Expropriation 13 1.3: Stylized Facts Related to M&A 15 1.3.1: M&A Waves 15 1.3.2: Decade Clusters 18 1.4: Valuation and Defenses 21 1.4.1: Valuation Methods 21 1.4.2: Defenses against M&A 25 Chapter 2: Overview of the Diversification Discount 2.1: Diversification as a Corporate Strategy 27 2.2: To What Extent is Value Created or Destroyed? 32 2.3: Decline in Diversification 35 2.4: Measuring the Effects of Diversification 37 Chapter 3: Empirical Strategies 3.1: Modeling the Diversification Discount 43