One possible explanation for home bias is that investors may obtain indirect international diversification benefits by … tests to examine the diversification potential of multinational firms and foreign market indices for investors domiciled in … multinational stocks. However, there is weak evidence that U.S. multinationals provided global diversification benefits in the full …

This paper addresses the questions of the effects of diversification strategies on firms' profitability. Empirical … analyses do not seem to confirm the hypothesis that diversification is the optimal response to the presence of synergies and …