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Maurizio La Rocca (), Tiziana La Rocca () and F. Javier Sánchez Vidal ()
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Tiziana La Rocca: University of Calabria (Italy)
F. Javier Sánchez Vidal: Technical University of Cartagena (Spain)

European Research on Management and Business Economics (ERMBE), 2018, vol. 24, issue 2, 63-70

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. / 0

Keywords: Product diversification; Multi-business firm; Relatedness; Firm performance; Firm value (search for similar items in EconPapers)
JEL-codes: L25 M10 (search for similar items in EconPapers)
Date: 2018
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