Corporate diversification may not be such a bad thing afterall

SUPER SHORT VERSION: If facing expropriation, managers may maximize shareholder wealth by diversifying their firm.Corporate Diversification is badThe standard line for the past 20 years has been that corporate diversification is bad for shareholders. We have seen this in the diversification discount work of Comment and Jarrell (1995) and many other papers (for instance Megginson, Morgan, and