We present a theory of the diversification discount based on investor specialization in information; this is modeled by …

The benefits of international diversification have been recognized for decades. In spite of this, most investors hold … domestic equity market to be several hundred basis points higher than returns in other markets. This lack of diversification …

For decades, the value of corporate diversification has interested academics, investors, and managers. The finding that … diversified firms, on average, trade at a substantial discount compared to focused firms ignited the debates on diversification … discount. Given that diversification destroys firm value, how can the popularity of a diversification strategy be explained …

This paper presents three definitions of time diversification and analyzes their implications for investment horizons …. Using decision quality criteria and methodology, we question standard advice. In analyzing time diversification with a … minimum of assumptions, we answer two main questions: how to rigorously define time diversification and what conditions favor …