"Agency Costs in Small Firm Acquisitions" is a comprehensive study that examines the acquisition processes of small companies within the Russell 2000. The research analyzes acquisitions that took place in the two years leading up to June 30, 2001, and highlights the differing valuations by bidders concerning sales figures, assets, as well as profits and cash flows. A key finding of the study is that a majority of independent directors or the presence of academic directors on the boards of the acquirers is associated with lower abnormal returns of the target companies during the announcement period. The research provides valuable insights into the dynamics of diversifying acquisitions and their impact on market reactions, which is significant for professionals in the fields of business and law.