Product Diversification and Stability of Employment and Sales: First Evidence from German Manufacturing Firms

Nils Braakmann () and Joachim Wagner ()

No 120, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: We use a unique rich newly built data set for German manufacturing enterprises to investigate the relationship between product diversification and the stability of sales and employment. We find that contrary to portfolio theoretic considerations more diversified firms exhibit a higher variability of sales and employment. However, the effects are negligibly small from an economics point of view.

Keywords: Product diversification; stability; variability; Germany (search for similar items in EconPapers)
JEL-codes: D21 L60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec
Date: 2009-02
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