Title: A Pure Financial Rationale for the Conglomerate Merger
Abstract: The Journal of FinanceVolume 26, Issue 2 p. 521-537 Article A PURE FINANCIAL RATIONALE FOR THE CONGLOMERATE MERGER Wilbur G. Lewellen, Wilbur G. LewellenAssociate Professor of Industrial Management, Purdue University. The author has benefitted from a generous supply of both support and suggestion provided by his colleagues at Purdue, Frank Bass, John Carlson, Robert Johnson, and Gary Schlarbaum. The standard disclaimer nonetheless applies: all are absolved of responsibility for the end product.Search for more papers by this author Wilbur G. Lewellen, Wilbur G. LewellenAssociate Professor of Industrial Management, Purdue University. The author has benefitted from a generous supply of both support and suggestion provided by his colleagues at Purdue, Frank Bass, John Carlson, Robert Johnson, and Gary Schlarbaum. The standard disclaimer nonetheless applies: all are absolved of responsibility for the end product.Search for more papers by this author First published: May 1971 https://doi.org/10.1111/j.1540-6261.1971.tb00912.xCitations: 601 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL REFERENCES 1 W. W. Alberts. "The Profitability of Growth by Merger", in: W. W. Alberts and J. E. Segall, The Corporate Merger, Chicago, Chicago University Press, 1966, pp. 235– 287. 2 W. W. Alberts. 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" Diversification, Portfolio Analysis, and the Uneasy Case for Conglomerate Mergers", Journal of Finance (September 1970), pp. 795– 802. 17 J. Lintner. " Security Prices, Risk, and Maximal Gains from Diversification", Journal of Finance (December 1965), pp. 587– 615. 18 H. M. Markowitz. Portfolio Selection: Efficient Diversification of Investments, New York, Wiley, 1959. 19 S. C. Myers. " Procedures for Capital Budgeting Under Uncertainty", Industrial Management Review (Spring 1968), pp. 1– 19. 20 G. D. McCarthy. Acquisitions and Mergers, New York, Ronald Press, 1963. 21 W. J. Mead. " Instantaneous Merger Profit as a Conglomerate Merger Motive", Western Economic Journal (December 1969), pp. 295– 306. 22 F. Modigliani and M. H. Miller. " The Cost of Capital, Corporation Finance, and the Theory of Investment", American Economic Review (June 1958), pp. 261– 297. 23 F. Modigliani and M. H. Miller. " Corporate Income Taxes and the Cost of Capital: A Correction", American Economic Review (June 1963), pp. 433– 443. 24 T. F. Pogue and R. M. Soldofsky. " What's in a Bond Rating", Journal of Financial and Quantitative Analysis (June 1969), pp. 201– 228. 25 J. S. R. Shad. " The Financial Realities of Mergers", Harvard Business Review (November-December 1969), pp. 133– 146. 26 W. F. Sharpe. " Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk", Journal of Finance (September 1964), pp. 425– 442. 27 H. C. Sherwood. " How They'll Rate Your Company's Bonds", Business Management (March 1966), pp. 38– 42, 77–79. 28 D. J. Smalter and R. C. Lancey. " P/E Analysis in Acquisition Strategy", Harvard Business Review (November-December 1966), pp. 85– 95. 29 K. V. Smith and J. C. Schreiner. " A Portfolio Analysis of Conglomerate Diversification", Journal of Finance (June 1969), pp. 413– 427. 30 V. L. Smith. " Corporate Financial Theory Under Uncertainty", Quarterly Journal of Economics (August 1970), pp. 451– 471. 31 J. F. Weston. " The Determination of Share Exchange Ratios", in:, Alberts and Segall op. cit., pp. 117– 138. 32 J. F. Weston. " Diversification and Merger Trends", Business Economics (January 1970), pp. 50– 57. Citing Literature Volume26, Issue2May 1971Pages 521-537 ReferencesRelatedInformation
Publication Year: 1971
Publication Date: 1971-05-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 181
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