While the strategic management literature suggests that related diversification is superior to unrelated diversification, there is little evidence that acquirers benefit from pursuing related targets. We argue that the empirical literature is plagued by poor measures of relatedness. Moreover, many empirical studies do not control adequately for the characteristics of the market for corporate co...

We examine whether and why the value of diversification changed during the 2008–2009 financial crisis. We find that diversified firms increased in value relative to single-segment firms during the crisis, a result that is not driven by the endogeneity of either financing constraints or firms’ diversification choices. We also find that the increase did not simply reflect changes in investor perc...

Diversification has become a common strategy of corporate risk management along with availing other potential benefits. The intent of this study is to identify and analyze the nature of relationship that exists between diversification and capital structure as well as profitability in Pakistan. For this purpose we use the 10 years’ (2000-2009) data of all the companies of chemical and food secto...

A multi-divisional firm can engage in ”winner-picking” to redistribute scarce funds efficiently across divisions. But there is a conflict between rewarding winners (investing) and producing resources internally to reward winners (incentives). Managers in winning divisions are tempted to free-ride on resources produced by managers in loosing division whose incentives to produce resources, antici...

Recognizing past diversification mistakes, some companies have initiated large-scale restructuring programs. Others have done nothing at all. Whatever the response, the strategic questions persist. Those who have restructured must decide what to do next to avoid repeating the past; those who have done nothing must awake to their vulnerability. To survive, companies must understand what good cor...

A multi-divisional firm can engage in ”winner-picking” to redistribute scarce funds efficiently across divisions. But there is a conflict between rewarding winners (investing) and producing resources with which to reward winners (incentives). Managers in winning divisions are tempted to free-ride on resources produced by managers in loosing divisions whose incentives to produce resources, antic...

The Market and Technology ........................................................................................................2 The Entrepreneur(s) ....................................................................................................................4 Awards and Publicity .............................................................................................................

Corporate diversification plays an important role in strategic decision-making, especially when it comes to corporate expansion and growth. This study examined the impact of on financial performance deposit money banks listed Nigerian Stock Exchange. The covered a ten-year period, from 2010 2019, included data annual reports thirteen deposit-taking institutions. Two accounting one economic meas...

The development of technological capabilities leads to fundamental changes of corporate strategies. Hence, an examination of technological capabilities of corporation is critical. Moreover, if corporations are member of business groups, the corporate strategies will be affected by business groups. Therefore, it must incorporate viewpoints of company and business group to explain clearly the rel...