Multibusiness firms and performance in Italy: What role does relatedness play?

• Maurizio La Rocca ^[1] ; Tiziana La Rocca ^[2] ; F. Javier Sánchez Vidal ^[3]
  1. [1] University of Calabria

     University of Calabria

     Cosenza, Italia

     
  2. [2] University of Messina

     University of Messina

     Mesina, Italia

     
  3. [3] Universidad Politécnica de Cartagena

     Universidad Politécnica de Cartagena

     Cartagena, España

     

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• Localización: European Research on Management and Business Economics, ISSN 2444-8834, Vol. 24, Nº. 2, 2018, págs. 63-70
• Idioma: inglés
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• 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.