We design a laboratory experiment to test the importance of wealth as channel for financial contagion across markets with unrelated fundamentals. In sequential global game, we analyze decisions group investors that hold assets in two markets. consider treatments vary level diversification these both treatments, find evidence contagion. When have completely diversified portfolios, provide due ef...

Diversification has been the subject of much examination in agribusiness firms. According to behavioral research, firms diversify through a process of either exploitation or exploration. Exploration entails searching for ideas and technologies that broaden a firm’s established experiences. Such diversification not only exposes a firm to a new technologies to which can be recombined with a firm’...

We show that the value of corporate diversification increased during the 2007–2009 financial crisis. Diversification gave firms both financing and investment advantages. First, conglomerates became significantly more leveraged relative to comparable focused firms. Second, conglomerates’ access to internal capital markets became more valuable not just because external capital markets became more...

Finding appropriate way for combination and use of existing resources in order to increase efficiency is one of the questions which has been raised in recent decade in academic strategic management literature. A large number of experimental studies tested this question that which kind of solution or technical and financial strategy leads to better efficiency. One of proposed technical solution ...

In this empirical study, we investigate the effects of IT investments on firm risk-return profile, emphasizing the complementarities between IT investments and firm boundary strategies; i.e., diversification and vertical integration. Our results are consistent with a strong moderating role of IT in leveraging firm boundary strategies on both the return and risk dimensions of firm financial perf...

In a well-designed enterprise risk management (ERM) program, the firm integrates risk management into the strategic planning process, addressing strategic risk, financial risk, operational risk, and hazard risk under a single overarching process. This is particularly important to large financial firms, such as property and casualty (P&C) insurers, which face a diverse set of risks. We find that...

The paper investigates the impacts of diversification strategies on various indicators bank risks and performance in emerging markets before, during, after global financial crisis. We use a data set 44 commercial banks Vietnam over period 2002-2019 Generalised Method Moments (GMM). results suggest that income funding improve without increasing their risk-taking. During crisis, assets diversity ...