Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7418816 | European Research on Management and Business Economics | 2018 | 8 Pages |
Abstract
This paper evaluates the effect of diversification strategy on corporate value for a sample of Italian companies. It accounts for both the level of diversification and relatedness components. Empirical analyses show a U-shaped curvilinear relationship between diversification and value. In contrast to the mainstream literature, our results highlight that related diversification has a negative effect, while unrelated diversification is a value-creating strategy.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Management of Technology and Innovation
Authors
Maurizio La Rocca, Tiziana La Rocca, F. Javier Sánchez Vidal,