| Article ID: | iaor201522938 |
| Volume: | 11 |
| Issue: | 3 |
| Start Page Number: | 255 |
| End Page Number: | 263 |
| Publication Date: | Sep 1988 |
| Journal: | Journal of Financial Research |
| Authors: | Chang Philip |
| Keywords: | economics, management |
The purpose of this paper is to integrate the multiproduct theory of the firm into financial theories. The relationship between economies of scope and synergy in conglomerate mergers is formally established in the context of the Capital Asset Pricing Model. It also is shown that a competitive market for corporate control would compete these benefits away.