Gomes, Joao F; Livdan, Dmitry - C.E.P.R. Discussion Papers - 2002
In this Paper we show that the main empirical findings about firm diversification and performance are actually … consistent with the optimal behavior of a firm that maximizes shareholder value. In our model, diversification allows a firm to … allows us to examine several aspects of the relationship between firm diversification and performance in a very general …
