Diversification, Industry Research and Development, and Market Performance.
- 1 August 1986
- journal article
- Published by Academy of Management in Academy of Management Proceedings
- Vol. 1986 (1) , 17-20
- https://doi.org/10.5465/ambpp.1986.4978277
Abstract
We present empirical evidence that unrelated diversification represents a hedging strategy against the technological surprises that occur in industries intensive in research and development. Using several measures of stock returns, we also show that the market rewards both unrelated diversification, and an underlying involvement in research and science based industries.Keywords
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