The impact of product diversification strategy on the corporate performance of large Spanish firms

Marisa Ramírez-Alesón and Manuel Espitia Escuer ()

Spanish Economic Review, 2002, vol. 4, issue 2, 119-137

Abstract: We analyze the impact of product diversification on performance. This topic has been discussed in the literature, and there is no consensus so far as to the significance or the direction of the impact. Performance is measured using Tobin's q for a sample of 103 large, non-financial Spanish firms (1992-1995). Diversification is measured by means of a categorical variable, as suggested by Varadarajan. The principal results indicate that the firms with intermediate levels of product diversification have the highest performance, while the firms with low and high levels of diversification show significantly lower performance, which performance is not significantly different between them.

Keywords: Product diversification; performance; firms; Spain (search for similar items in EconPapers)
JEL-codes: L10 (search for similar items in EconPapers)
Date: 2002-07-24
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Citations: View citations in EconPapers (6)

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