Competition from specialized firms and the diversification-performance linkage

Santalo, Juan and Becerra, Manuel (2008) Competition from specialized firms and the diversification-performance linkage. Journal of Finance, 63 2: 851-883. doi:10.1111/j.1540-6261.2008.01333.x


Author Santalo, Juan
Becerra, Manuel
Title Competition from specialized firms and the diversification-performance linkage
Journal name Journal of Finance   Check publisher's open access policy
ISSN 0022-1082
1540-6261
Publication date 2008-01-01
Sub-type Article (original research)
DOI 10.1111/j.1540-6261.2008.01333.x
Open Access Status Not Open Access
Volume 63
Issue 2
Start page 851
End page 883
Total pages 33
Place of publication Hoboken, NJ, United States
Publisher Wiley-Blackwell
Language eng
Abstract In this study, we show that the effect of diversification on performance is not homogeneous across industries and explore analytically and empirically the implications of this finding for the diversification literature. Diversified firms perform better in industries with a small number of nondiversified competitors or, equivalently, when specialized firms have a small combined market share, but worse as the presence of specialized firms increases in the industries in which they compete. The results are robust to the use of methods that alleviate the self-selection problem and call for a reassessment of the diversification-performance relationship.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
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Created: Sat, 03 Oct 2015, 00:16:36 EST by Susan Peeters on behalf of UQ Business School