Firms allocate many resources to environmental, social, and governance (ESG) issues and
to growth options as if they were independent sources of value. Challenging this view, this …

Abstract Research Summary The last decade has witnessed an increasing interest in the
use of history and historical research methods in strategy research. We discuss how and …

We develop a simple approach to valuing stocks in the presence of learning about average
profitability. The market‐to‐book ratio (M/B) increases with uncertainty about average …

Using recent econometric developments about causal inference, I examine whether
diversification destroys value. I estimate the value effect of diversification by matching …

Corporate finance and corporate strategy have long been seen as different sides of the
same coin. Though both focus on the same broad problem, investment decision-making, the …

Our paper elaborates the effects of resource relatedness on value of a multibusiness firm.
We emphasize that value results from interplay of benefits of synergy and redeployability …

Research summary: Combining the concept of resource relatedness with the economic
notion of sunk costs, we assess how the potential for resource redeployment affects market …

Numerous existing studies have explored the impact of corporate diversification on firm
performance, whereas considerably less research has investigated the inter-relationships …

We examine how firms redraw their boundaries after acquisitions using plant-level data. We
find that there is extensive restructuring in a short period following mergers and full-firm …

We provide evidence that the positive relation between firm‐level stock returns and firm‐
level return volatility is due to firms' real options. Consistent with real option theory, we find …