Journal ArticleDOI
Diversification and the Risk-Return Trade-off
Raphael Amit,Joshua Livnat +1 more
TLDR
In this paper, the authors investigated the risk return trade-off at the level of individual firms with both accounting and market-based measures of risk, and presented information on a study which investigated a risk-return tradeoff for individual firms.Abstract:
The article presents information on a study which investigated the risk-return trade-off at the level of individual firms with both accounting and market-based measures of risk. The author describe...read more
Citations
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Journal ArticleDOI
Testing a causal model of corporate risk taking and performance.
TL;DR: In this article, the determinants of organizational risk taking and its impact on economic performance are critical issues in strategic management using a model that included risk, performance, performance expecta, and expectation.
Journal ArticleDOI
Curvilinearity in the diversification–performance linkage: an examination of over three decades of research
TL;DR: The authors derive three competing models from the literature and empirically assess these using meta-analytic data drawn from 55 previously published studies, concluding that moderate levels of diversification yield higher levels of performance than either limited or extensive diversification.
Journal ArticleDOI
Strategic decision models: Integrating different perspectives
Michael A. Hitt,Beverly B. Tyler +1 more
TL;DR: Support was found for the rational/analytical normative choice perspective with objective criteria explaining the greatest amount of total explained variance in evaluation of target firms.
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Diversification Decisions in Family‐Controlled Firms
TL;DR: In this paper, the authors examine diversification decisions of family firms and suggest that on average family firms diversify less both domestically and internationally than non-family firms, and when they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are "culturally close".
Journal ArticleDOI
Research on corporate diversification: A synthesis
TL;DR: In this article, a synthesis of diverse streams of research on diversification is presented with a view to fostering further strategic management research in this area by taking a multi-disciplinary perspective.
References
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Journal ArticleDOI
Risk reduction as a managerial motive for conglomerate mergers
Yakov Amihud,Baruch Lev +1 more
TL;DR: In this article, a manager's motivation for a conglomerate merger is investigated. And the authors show that managers engage in conglomerate mergers to decrease their largely undiversifiable "employment risk" (i.e., risk of losing job, professional reputation, etc.).
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Towards an economic theory of the multiproduct firm
TL;DR: In this paper, a theory of the multiproduct firm is presented, in which profit seeking firms are seen to diversify in order to avoid the high transactions costs associated with using various markets to trade the services of various specialized assets.
Journal ArticleDOI
Diversification strategy, profit performance and the entropy measure
TL;DR: In this paper, the authors combine the strengths of the index approach, namely, simplicity, objectivity and replicability, with the essential richness of Rumelt's methodology, and find that firms with predominantly related diversification show significantly better profit growth than those with predominantly unrelated diversification.