We examine the relation between corporate diversification, real earnings management, and firm value. Our analysis indicates that industrial diversification and the combination of industrial and global diversification exacerbate real activities manipulation, whereas global diversification...

We estimate dynamic R&D investment models in publicly traded Japanese manufacturing firms over 2001-2009. Splitting into two subsamples by the degree of corporate diversification, we provide evidence that less-diversified firms have an increased tendency to smooth R&D but more-diversified firms...

This paper provides evidence on how the diversification strategy impact on the firm value. Furthermore the paper studies the effect of the levels and types of diversification on the firm value. To achieve this aim, we propose a value model that incorporates the level and type of diversification....

Internal capital markets (ICMs) provide firms an alternative to costly external financing; however, they also provide an avenue to avoid the monitoring associated with issuing external capital. We argue that firms operating inefficient internal capital markets will avoid outside financing....

This paper studies the impact of diversification on firms that file for Chapter 11 bankruptcy. Prior research suggests that diversification affects both the probability and costs of distress. Treating bankruptcy as a special case of distress, we find that diversification reduces the likelihood...

A system for measuring the economic and financial performance plays an important role in managing a business, because it provides the information necessary for decision making and launching of various actions. Tools and indicators for measurement and evaluation of economic and financial...

The objective of this study is to investigate the impact of corporate diversification in a sample of 255 Turkish firms for the period between 2006 and 2012. Regression results indicate that diversified firms trade at a premium compared to single-segment firms. To explain this finding, we also...

This paper examines the effect of corporate diversification on firm value during periods of economic downturns. Analysis of diversified firms’ valuation during recessionary periods reveals a significant increase in relative value of diversified firms. The observed improvement in the relative...

This paper examines effects of corporate diversification on firm value using methodology of Berger and Ofek (1995) excess value measures based on assets and sales multiples. We match diversified firms and single-segment firms traded in National Market of ISE during the period of 2005-2010 in...