whether to take the firm public. In this decision, the entrepreneur trades off diversification benefits of going public …

growth. At early stages of development, the presence of indivisible projects limits the degree of risk …-spreading (diversification) that the economy can achieve. The desire to avoid highly risky investments slows down capital accumulation and the … equilibrium is inefficient because individuals do not take into account their impact on the diversification opportunities of …

rents are not too high the diversification benefits of conglomeration may dominate the negative incentive effects. A more … we show that these schemes should respond to actual risk choices, rather than be limited to anticipated risk choices. …

that financial development has important consequences for efficiency and specialization (or diversification) of investments …

are diseconomies of scope. There is a rent-extraction incentive for firms to adopt flexible technologies, which enable … in production, however, due to diseconomies of scope. This paper shows that the welfare gain from increased competition …

In this Paper we show that the main empirical findings about firm diversification and performance are actually … consistent with the optimal behavior of a firm that maximizes shareholder value. In our model, diversification allows a firm to … allows us to examine several aspects of the relationship between firm diversification and performance in a very general …