CAPITAL MARKET EVALUATION OF M-FORM IMPLEMENTATION AND DIVERSIFICATION STRATEGY

Firm announcements of adoption of the muitidivisionai (M-form) structure are evaiuated using stocii market data and event methodology. Results indicate that investors positiveiy vaiue M-form adoption. Furthermore, some support is found for the hypothesis that firm diversification strategy (related versus unrelated) is contingently reiated to investors' valuation of M-form impiementation.

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