This study tests the relationship between
diversification strategy and earnings persistence
provided by Autoregressive, Integrative, Moving Average
(ARIMA) models. When higher-order ARIMA models are used,
this study shows the earnings persistence of U.S.
Multinational firms to be positively related to size,
related diversification and vertical integration, and
negatively related to unrelated diversification.
Abstract. pdf-file available for download.
