Phenyl group migration within protonated 1,2-diphenyl hydrazines has been studied theoretically using the semi-empirical AM1 method. This reaction proceeds through a 3-membered cyclic transition state and requires high activation energy. In the reactant, there was no resonance stabilization for the moving Z-ring, however, hammett $p_Z^+$ values are large due to the direct involvement of the Z-ring inthe reaction, and the development of a negative charge on the reaction center gives them a posifive value. In the case of the non-moving ring, $p_Y^+$ values are small and negative owing to the smaller positive charge increase in the reaction center. The cross-interaction constant, $p_YZ^+$, was obtained from the activation enthalpies, using the multipe linear regression methdo, and the interaction between two substituents, Y and Z, is examined.