Can Corporate Diversification Promote Firm Value? A Survey

This paper performs a rigorous survey of existing measures of diversification and fills a number of missing gaps between the theoretical and empirical literature surveyed by previous authors. In addition, the study outlines the areas where future work is possible and in which direction researchers may advance their thoughts. A detailed discussion on the various methodologies employed by earlier researchers and their findings are presented. This survey indicates that there is further scope for development of new theories and the empirical literature suggests that there is scope for development of new measures of diversification.