The present study scrutinizes the implications of corporate structure for performance of diversified firms. The benchmark for the scrutiny is the set of the extant conflicting predictions about the optimal choice of two features of corporate structure, centralization of resource allocation and incentives offered to unit managers. The study uses the valuation model to overcome challenges of informal reasoning in the complex context of resource reallocation. The model disentangles the existing conflicting predictions, identifies the boundary conditions for each prediction, and reestablishes the complex interactions between corporate structure and relatedness. The new results lay the groundwork for a better empirical identification of the effects of relatedness and corporate structure on corporate value, often tested in corporate diversification research.