This study empirically examines the extent to which the measurement structure of accountingand market-based indicators converge on a financial performance construct by time period and by diversification strategy. In a longitudinal, single-factor model offinancial performance, it wasfound that the relationship of these two types offinancial performance measures changed in periods of stability versus instability andfor related diversifiers versus unrelated diversifiers. It is suggested that meta-analytic studies in strategy research may be able to incorporate situational factors in order to obtain more valid findings. In addition, implications for researchers selecting performance measures for current studies are discussed.
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