17 G.Andrade,“DoAppearancesMatter?TheImpactofEPS
Accretion and Dilution on Stock Prices,” working paper,
Harvard Business School, 1999.
18 A.Bhide, “ReversingCorporate Diversification,” in The
NewCorporateFinance:WhereTheoryMeetsPractice,ed.
D. H. Chew Jr. (New York: McGraw-Hill, 1993).
19 M.Bradley,A.Desai,andE.H.Kim,“SynergisticGains
fromCorporateAcquisitionsandtheirDivisionbetweenthe
Stockholders of Target and Acquiring Firms,” Journal of
Financial Economics21, (1988): 3–40.
20 This study was referenced in an article titled “Merger
Mayhem” that appeared inBarron’son April 20, 1998.
21 KPMG measured the success at creating value by
comparing the postdeal stock price performance of the
combined firmto theperformanceof therelevantindustry
segment for a year after the deal was completed.
22 S.B.MoellerandF.P.Schlingemann,“AreCrossBorder
Acquisitions Different From Domestic Acquisitions?
Evidence from Stock and Operating Performance of U.S.
Acquirers,” working paper, SSRN, 2004.
23 ThisstudywasdonebyKeefe,Bruyette,andWoods,an
investmentbank.Itwasreferencedinanarticletitled“Merger
Mayhem” inBarron’s, April 20, 1998.
24 M.L.Sirower,TheSynergyTrap(NewYork:Simon&
Schuster, 1996).