On the mathematics behind the entropy diversification measure in strategic management

Booth, David E.; Booth, Stephane E.

doi:10.1504/ijmor.2009.026280

Cited by 3 publications

(2 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The entropy is decomposable so that it gives a natural way to measure concentration. The Herfindahl index, which is popular in measuring market concentration, is actually an approximation to the entropy (Booth and Booth (2009)). The measure was extended to include international market diversification by Kim (1989).…”

Section: B International Diversification Global Top 5 and Country Fmentioning

confidence: 99%

The International Diversification of Banks and the Value of Their Cross-Border M&A Advice

et al. 2017

View full text Add to dashboard Cite

We examine the impact of the international diversification by banks on the value of their advice provided in cross-border merger and acquisition transactions by studying bidder returns and deal performance following 1,708 cross-border M&A deals. We find that bidders engaging a more internationally diversified financial advisor face lower stock price and synergy returns, worse deal operating performance, and slower deal completion. We show that these negative effects of diversification can be mitigated by involvement in financing or country-specific available capacity of the advisor.

show abstract

Section: B International Diversification Global Top 5 and Country Fmentioning

confidence: 99%

The International Diversification of Banks and the Value of Their Cross-Border M&A Advice

et al. 2017

View full text Add to dashboard Cite

show abstract

“…The entropy is decomposable so that it gives a natural way to measure concentration. The Herfindahl index which is popular in measuring market concentration is actually an approximation to the entropy(Booth and Booth (2009)). 10 The acquirer may not be able to observe or have less information about incomplete deals.…”

mentioning

confidence: 99%

The International Diversification of Banks and the Value of their Cross-Border M&A Advice

et al. 2010

View full text Add to dashboard Cite

This paper investigates the effects of international diversification of banks on the value of their M&A advice. We study bidder returns to 1,253 cross-border M&A announcements. We find that acquirers engaging a more internationally diversified financial advisor generate lower excess returns. Acquirers benefit most from advisors with a greater focus on their home country. These results suggest that the benefits of advisors' international diversification related to greater economies of scale and scope and the flexibility of allocating deals to the most skilled employee do not outweigh the costs emanating from a lack of country-specific knowledge and greater conflicts of interest.

show abstract

An Opening in the Congregational Closet? Boundary-Bridging Culture and Membership Privileges for Gays and Lesbians in Christian Religious Congregations

Adler

2012

Social Problems

View full text Add to dashboard Cite

On the mathematics behind the entropy diversification measure in strategic management

Cited by 3 publications

References 4 publications

The International Diversification of Banks and the Value of Their Cross-Border M&A Advice

The International Diversification of Banks and the Value of Their Cross-Border M&A Advice

The International Diversification of Banks and the Value of their Cross-Border M&A Advice

An Opening in the Congregational Closet? Boundary-Bridging Culture and Membership Privileges for Gays and Lesbians in Christian Religious Congregations

Contact Info

Product

Resources

About