Recent empirical literature documents value-destroying \crosssubsidization" among the divisions of diversi ̄ed ̄rms. However, this literature relies upon two maintained hypotheses: that divisions of diversi ̄ed ̄rms are randomly allocated to their corporate parents and that the investment opportunities facing conglomerate divisions are identical to those of stand-alone ̄rms in their industries. T...

We identify a novel aspect of potential collaboration between targets and acquirers in managing earnings during mergers and acquisitions. Using a sample of 2,128 mergers & acquisitions from 1985-2010, we find that target firms report lower earnings for quarters during the “quiet” period between announcement and completion of these deals. Targets‟ reduced earnings are due mainly to higher expens...

T word ‘merger’ often is associated with a big company buying a smaller one or two large companies coming together. But it is not only large companies that can succeed through acquisitions—even startups can use mergers as an effective way to grow their businesses. As a small team leading the startup Ocimum Biosolutions, based in Hyderabad, India, a decade ago, my colleagues and I could have opt...