Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Matthew Magilke

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This paper pioneered in examining the impact of diversification on financial performance of technology companies and comparing diversification and its impact between technology and media companies. Diversification and financial performance in 24 leading media companies and 19 leading tech companies from 2012 to 2017 were studied. The empirical results suggest diversification in general has a positive impact on ROE of tech companies. There is also some evidence for a positive impact from related diversification on ROA of media companies with market cap over $10B. The results also show that media companies are more diversified than tech companies. From 2012 to 2017, both tech companies and big media companies have steadily increased their related degree of diversification while slightly reducing their overall diversification. That seems to suggest that the media and tech conglomerates have increased their effort to create synergy.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.