Competition from specialized firms and the diversification-performance linkage

dc.contributor.author	Santalo, J.
dc.contributor.author	Becerra, M.
dc.date.issued	2008
dc.description.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.
dc.description.statementofresponsibility	Juan Santalo and Manuel Becerra
dc.identifier.citation	The Journal of Finance, 2008; 63(2):851-883
dc.identifier.doi	10.1111/j.1540-6261.2008.01333.x
dc.identifier.issn	0022-1082
dc.identifier.issn	1540-6261
dc.identifier.uri	http://hdl.handle.net/2440/87609
dc.language.iso	en
dc.publisher	Wiley
dc.rights	Copyright status unknown
dc.source.uri	https://doi.org/10.1111/j.1540-6261.2008.01333.x
dc.title	Competition from specialized firms and the diversification-performance linkage
dc.type	Journal article
pubs.publication-status	Published

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