Diversification Patterns in the Growth of Firms: Evidence from Italian Manufacturing

Carolina Castaldi, Mishael Milaković and Angelo Secchi

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: We present empirical evidence on diversification patterns in Italian manufacturing firms and detect a robust relationship between firm size and diversification levels, with an elasticity of diversification that does not depend on firm size and is well below unity. Diversification does not lead to decreased corporate risk when measured in terms of the growth performance of Italian manufacturing firms. The findings support the Penrosian theory of diversification in the process of firm growth. In addition, we also speculate about the role of technology in the size-diversification nexus.

Date: 2003-12-18
New Economics Papers: this item is included in nep-com, nep-ent, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.lem.sssup.it/WPLem/files/2003-16.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2003/16

Access Statistics for this paper

More papers in LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).