caa a22 4500 469042842 CHVBK 20180323132816.0 cr unu---uuuuu 170328e19920601xx s 000 0 eng 10.1007/BF00158138 doi (NATIONALLICENCE)springer-10.1007/BF00158138 Wilson Thomas Department of Economics, Institute for Policy Analysis, University of Toronto, Canada aut An analysis of the profitability of businesses of diversified companies [Elektronische Daten] [Thomas Wilson] This paper presents empirical evidence on the relationship between diversification and profitability. The data set used in the analysis includes data on 55 U.S. corporations who participated in phase II of the project on Profit Impact of Market Strategy (PIMS). Following upon the pioneering work of Carl Kaysen, complex indices of diversification are developed. Cross sectional regression analyses indicate a statistically significant positive association between measures of corporate diversification and measures of business profitability (return on investment or profit margin on sales). These relationships are insensitive to variations in the treatment of outliers, and do not appear to be accounting artifacts. The extent to which the relationship between diversification and profitability reflects the realization of real efficiency gains from diversification, or the augmentation of market power cannot be determined from these results. Kluwer Academic Publishers, 1992 Diversification nationallicence profits nationallicence market strategy nationallicence mergers nationallicence Review of Industrial Organization Kluwer Academic Publishers 7/2(1992-06-01), 151-185 0889-938X 7:2<151 1992 7 11151 https://doi.org/10.1007/BF00158138 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00158138 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Wilson Thomas Department of Economics, Institute for Policy Analysis, University of Toronto, Canada aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers 7/2(1992-06-01), 151-185 0889-938X 7:2<151 1992 7 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer