We investigate the possibility that the diversification discount is due to differing growth opportunities between diversified and single-segment firms. We do this by comparing diversified business segments with individual single-segment same-industry firms of comparable growth opportunities....

How stock price synchronicity mirrors firm-specific information has been a subject of much debate. We posit that price synchronicity can be low in either good or bad firm-specific information environments because stock prices incorporate both public and private information. Using three proxies...

Investors and analysts classify firms to conduct valuations or to evaluate performance. The industry groupings usually rely on SIC, NAIC, GICS, or Fama-French classifications. Our purpose is to form groups of companies based on the structure of their financial statements. Using cluster analysis,...