Corporate Relatedness and Wealth Creation in Machinery Mergers

  • Florian Geiger


Corporate vertical integration and diversification strategies are fundamental topics in strategic management research. Despite an increasing recognition of the role of relatedness for wealth creation in mergers (Maksimovic and Philipps 2001; Fan and Goyal 2006), recent empirical studies (Graham, Lemmon, and Wolf 2002; Villalonga 2004) and business consulting literature (McKinsey 2004; RBSC 2005; PWC 2008) challenge the long predominating view that multi-business firms are inefficient and refresh discussion on the appropriate corporate focus of firms. We shed additional light on this discussion providing an industry-specific analysis of merger decisions of firms for various degrees of relatedness.


Abnormal Return Event Window Wealth Creation Horizontal Merger Machinery Industry 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010

Authors and Affiliations

  • Florian Geiger

There are no affiliations available

Personalised recommendations