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Document type:
Zeitschriftenaufsatz 
Author(s):
Bielstein, Patrick; Fischer, Mario; Kaserer, Christoph 
Non-TUM Co-author(s):
ja 
Cooperation:
international 
Title:
The cost of capital effect of M&A transactions: Disentangling coinsurance from the diversification discount 
Abstract:
This study argues that in corporate diversification there is a bright side (coinsurance effect) and a dark side (diversifi- cation discount). While diversification might reduce systematic risk by its impact on the cost of financial distress, it might increase systematic risk because of inefficient cross-subsidization at the same time. Building on a theoretical model, we analyze mergers and acquisitions in the US over the period 1985 to 2014. We find the coinsurance effect to decrease the cost of...    »
 
Keywords:
corporate diversification, cost of capital, internal capital markets, M&A transactions 
Intellectual Contribution:
Discipline-based Research 
Journal title:
European Financial Management 
Journal listet in FT50 ranking:
nein 
Year:
2018 
Journal volume:
24 
Journal issue:
Pages contribution:
650-679 
Fulltext / DOI:
Key publication:
Nein 
Peer reviewed:
Ja 
International:
Ja 
Book review:
Nein 
Commissioned:
not commissioned 
Professional Journal:
Nein 
Interdisciplinarity:
Nein 
Mission statement:
Ethics and Sustainability:
Nein