Most empirical studies support the conclusion that unrelated diversification benefits a firm's shareholders.

Question

Quizplus · Accepted Answer

While this statement was widely accepted in the past, recent empirical studies have shown mixed results on the benefits of unrelated diversification. Some studies suggest that related diversification may be more beneficial for shareholders. Additionally, the success of diversification strategies may depend on various factors such as the industry, the competitive environment, and the firm's resources and capabilities.

Most Empirical Studies Support the Conclusion That Unrelated Diversification Benefits