The Failure of Empirical Research to Find Unambiguous Evidence That

question 13

Multiple Choice

The failure of empirical research to find unambiguous evidence that related diversification outperforms unrelated evidence points to:

• A)The fact that firm performance is the outcome of many factors of which diversification strategy is only one
• B)Reverse causation: it may be that poorly performing firms are more likely to take the risk of unrelated diversification
• C)Difficulties in determining whether diversification is related or unrelated
• D)All the above.

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Definitions:

Psychological Assessment

The process of testing that uses a combination of techniques to help arrive at some hypotheses about a person and their behavior, personality, and capabilities.

Psychological Testing

The process of administering standardized assessments designed to evaluate an individual's cognitive, emotional, or personality characteristics.

Clinical Significance

An attribute of research results, referring to the practical utility of the treatment studied, which does not follow automatically from the results’ statistical significance.

Statistical Significance

An attribute of research results when it is extremely unlikely that they could have occurred purely by chance. The standard by which most research is judged as valuable or worthy of being published.