Faculty Scholarship 1994 - Present
Idiosyncratic Differences in the Diversification/Performance Linkage: EVA, MVA, and Accounting-Based Measures
The operationalization of firm performance continues to be a thorny issue for strategic management scholars. Given the vast amount of literature devoted to the study of business and the plethora of variables hypothesized to explain performance, one would think that such an important variable would be clearly defined. However, there continues to be wide disagreement over the measurement of performance within the strategy literature. The present study investigates the strategy/performance linkage using accounting-based and market based proxies of performance. It is suggested that strategy research may be influenced by the type of performance used, thereby indicating an idiosyncratic relationship between strategy and performance measures.