Purpose: The purpose of this paper is to reexamine the corporate focus hypothesis to establish the characteristics of firms that discontinue operations. The authors concentrate on four interrelated elements of the hypothesis, diversification, performance, financial constraint and market-based...

Purpose: The purpose of this paper is to examine the relationship of CEO compensation plans and the risk of managerial equity portfolios with the extent of strategic investments in advertising, capital expenditures and research and development (R&D). The elements of compensation are salary,...

We assess several aspects of analysts' forecasting performance for stocks included in Business Week's annual list of 100 “hot-growth” companies. We find that analysts underestimate earnings on average before stocks are included in the list, and that they tend to overestimate them afterward....

In recent decades there have been several changes in the definition of discontinued operations in the U.S., suggesting that regulators and prepares consider them important. We examine the reasons that firms choose to discontinue operations and their performance after the changes. As in earlier...