EXTENDING MODERN PORTFOLIO THEORY INTO THE DOMAIN OF CORPORATE DIVERSIFICATION - DOES IT APPLY

• 成果类型: Article
• 署名作者: LUBATKIN, M; CHATTERJEE, S
• 署名单位: University System of Ohio; Case Western Reserve University
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/256772
• 发表日期: 1994
• 页码: 109-136
• 关键词: MODERN FINANCIAL THEORY; SYSTEMATIC-RISK; capital-market; management buyouts; public-policy; stock returns; performance; strategy; FIRMS; POWER

摘要

It is widely held that diversification lowers a firm's unsystematic (business-specific) risk but does not affect its systematic (systemwide) risk. We tested each notion while controlling for other factors that influence risk. The findings show that the relationship between corporate diversification and both forms of stock return risk generates a U-shaped graph. Thus, an important way for corporations to minimize risk is to diversify into similar businesses rather than into identical or very different businesses.