Multibusiness firms and performance in ItalyWhat role does relatedness play?

  1. Maurizio La Rocca 1
  2. Tiziana La Rocca 2
  3. F. Javier Sánchez Vidal 3
  1. 1 University of Calabria
    info

    University of Calabria

    Cosenza, Italia

    ROR https://ror.org/02rc97e94

  2. 2 University of Messina
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    University of Messina

    Mesina, Italia

    ROR https://ror.org/05ctdxz19

  3. 3 Universidad Politécnica de Cartagena
    info

    Universidad Politécnica de Cartagena

    Cartagena, España

    ROR https://ror.org/02k5kx966

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Revista:
European Research on Management and Business Economics

ISSN: 2444-8834

Año de publicación: 2018

Volumen: 24

Número: 2

Páginas: 63-70

Tipo: Artículo

DOI: 10.1016/J.IEDEEN.2018.01.001 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: European Research on Management and Business Economics

Resumen

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.

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