there is little consensus on the corporate diversification-efficiency relationship in the diversification literature. the study aims to contribute to the literature by looking jointly at two dimensions of corporate diversification as product diversification and international diversification and the relationship between them. the results show negative relationship between product diversification...

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a decisive rol...

The empirical studies to date have not found consistent support for the performance advantages of international diversification. One reason suggested by internalization theory is that leveraging firm specific assets is critical for enhancing performance from international diversification. We develop and empirically test the hypothesis that investment in information technology helps in leveragin...

• Markowitz portfolio theory can be applied to determine budget allocation in paid online search advertising. Risk-adjusted performance advertising improved through diversification negatively correlated keywords. Average keyword popularity growth estimated from Google Trends is strongly related the standard deviation of for each (R 2 = 74%) a sample data 15 major sectors. The proposed approach ...

Convexity arises quite naturally in financial risk management. In risk preferences concerning random cash-flows, convexity corresponds to the fundamental diversification principle. Convexity is a basic property also of budget constraints both in classical linear models as well as in more realistic models with transaction costs and constraints. Moreover, modern securities markets are based on tr...

This paper examines the relationship between overconfidence and losses from under-diversification among Dutch investors. We find that a lack of proper portfolio diversification is positively associated with overconfidence. Part this mediated through lower propensity overconfident individuals to hire professional financial adviser. use data 2005 wave DNB Household Survey provides us detailed 257...

This paper analyzes the impact of technological diversity on innovation inputs and success using Swiss firm-level panel data. While we do not find any impact of diversity on R&D intensity, we confirm a positive impact of diversity on patent applications as suggested by the literature. However, since patent applications reflect an intermediate innovation input rather than output, we extend the a...