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Shim, Hyeongsop
School of Business Administration
Research Interests
  • Corporate finance
  • Mergers and Acquisitions
  • Restructuring
  • Private Equity
  • Initial Public Offerings
  • Capital Structure


Does Financial Synergy Provide a Rationale for Conglomerate Mergers?

DC Field Value Language Shim, Hyeongsop ko Mooney, Tim ko 2015-09-02T05:17:30Z - 2015-08-22 ko 2015-08 ko
dc.identifier.citation ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, v.44, no.4, pp.537 - 586 ko
dc.identifier.issn 2041-9945 ko
dc.identifier.uri -
dc.description.abstract We examine two sources of financial synergies — coinsurance effects and asset liquidity — in mergers and test whether financial synergy is greater in conglomerate mergers than horizontal mergers. We find that a reduction in cash flow volatility for consolidated firms helps enhance shareholder value. Consistent with theoretical predictions of earlier studies, our results indicate that a merger can increase shareholder value when the cash flow volatility of the consolidated firm is less than the current cash flow volatility of the acquiring firm. We present new evidence that the source of financial synergies in conglomerate mergers comes mainly from higher asset liquidity. Our test results also suggest that liquidation values are higher in conglomerate mergers than horizontal mergers holding the coinsurance effect constant, particularly when the target is financially constrained. ko
dc.description.statementofresponsibility open -
dc.language 영어 ko
dc.publisher WILEY-BLACKWELL ko
dc.title Does Financial Synergy Provide a Rationale for Conglomerate Mergers? ko
dc.type ARTICLE ko
dc.identifier.scopusid 2-s2.0-84979085251 ko
dc.identifier.wosid 000360061400002 ko
dc.type.rims ART ko
dc.identifier.doi 10.1111/ajfs.12099 ko
dc.identifier.url ko
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