This study investigates the effects of firm-level political risk on corporate investments and operating efficiencies for industrially diversified and focused firms. Using firm-level political risk data from Hassan et al.(2019), we document that both political risk and diversification lead to...

Mueller’s (1972) life cycle theory suggests that innovation is the driver of growth and a firm’s growth rate is what determines its life cycle. In testing various potential implications of life cycle stages, however, researchers to date have chosen proxies other than innovations (e.g., age)....