Based on a sample of 70 French industrial firms, this paper analyses the market-based performance of diversified firms by including the stock market environment. The findings show that unrelated diversifiers outperform related ones during bearish markets, and that there is no significant...

This paper analyses the relationship between diversification strategy, firm's market-based performance measured in terms of the risk-return trade-off and value creation. Results from a sample of 41 French industrial diversified firms indicate that unrelated strategy yields a better risk-return...