This study extends the stream of research that is concerned with the influence of portfolio interrelationships on firm performance by employing a sample of European companies. The findings of this study confirm a positive relationship between resource-based relatedness as measured by Robins and...

We propose that due to financial market pressures, managers are forward-looking in their search and decision processes and focus on meeting performance targets set by the financial community. Using panel data on S&P 100 companies, we find that pressure felt by management to meet the analyst...