Martínez Campillo, A. Fernández Gago, R. Robles Fernández, M. Dolores
Year of Publication:
[Journal:] Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE) [ISSN:] 1135-2523 [Volume:] 15 [Year:] 2009 [Issue:] 1 [Pages:] 15-28
This study seeks to analyze the determinants of the diversification decision. According to previous literature, we distinguish between managerial and economic determinants depending on if they may maximize managers' utility or firms' utility respectively. After applying a Logit regression analysis on a sample of 508 potential cases of diversification (1997-2001), results indicate that both managerial and economic determinants influence the decision to diversify. Specifically, one economic factor seems to be the most important determinant of such a decision in Spanish firms.