Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205768 
Year of Publication: 
2018
Citation: 
[Journal:] European Research on Management and Business Economics (ERMBE) [ISSN:] 2444-8834 [Volume:] 24 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2018 [Pages:] 63-70
Publisher: 
Elsevier, Amsterdam
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.
Subjects: 
Product diversification
Multi-business firm
Relatedness
Firm performance
Firm value
JEL: 
L25
M10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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