What about the effects of increasing diversification in response to environmental transformations? the case of Spain

Transformations in Business and Economics

Volumn 10, Issue 1, 2011, Pages 148-165

  Martinez Campillo, Almudena ^a   Fernandez Gago, Roberto ^a  

^a UNIVERSITY OF LEÓN   (Spain)

Author keywords

Corporate diversification; Environmental transformations; Firm growth; Firm profitability; Spain

Indexed keywords

EID: 79955580815     PISSN: 16484460     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Conference Paper

References (56)

1. Arnould, R.J. (1969), "Conglomerate growth and profitability", in: L. Garoian (ed.), Economics of Conglomerate Growth, Oregon State University, Corvallis, pp.72-80.
2. Berger, P., Ofek, E. (1995), "Diversification effect on firm's value", Journal of Financial Economics, Vol. 37, pp.39-65.
3. Campa, J.M., Kedia, S. (2002), "Explaining the diversification discount", Journal of Finance, Vol. 57, No 4, pp. 1731-1762.
4. Chakrabarti, A., Singh, K., Mahmood, I. (2007), "Diversification and performance: Evidence from East Asian firms", Strategic Management Journal, Vol. 28, No 2, pp. 101-120.
5. Colpan, A.M., Hikino, T. (2005), "Changing economic environments, evolving diversification strategies, and differing financial performance: Japan's largest textile firms, 1970-2001", Industrial and Corporate Change, Vol. 14, No 6, pp.897-940.
6. Cottrell, T., Nault, B. (2004), "Product variety and firm survival in the microcomputer software industry", Strategic Management Journal, Vol. 25, No 10, pp. 1005-1025.
7. Denis, D.J., Denis, D.K., Sarin, A. (1997), "Agency problems, equity ownership and corporate diversification", Journal of Finance, Vol. 52, No 1, pp. 135-160.
8. Denis, D.J., Denis, D.K., Sarin, A. (1999), "Agency theory and the influence of equity ownership structure on corporate diversification strategies", Strategic Management Journal, Vol. 20, No 11, pp.1071-1076.
9. Desai, A., Kroll, M., Wright, P. (2005), "Outside board monitoring and the economic outcomes of acquisitions: a test of the substitution hypothesis", Journal of Business Research, Vol. 58, No 7, pp.926-934.
10. Fraquelli, G., Piacenza, M., Vannoni, D. (2004), "Scope and scale economies in multi-utilities: Evidence from gas, water and electricity combinations", Applied Economics, Vol. 36, No 18, pp.2045-2057.
11. Geringer, M., Tallman, S., Olsen, D. (2000), "Product and international diversification among Japanese multinational firms", Strategic Management Journal, Vol. 21, No 1, pp.51-80.
12. Gort, M. (1962), Diversification andIntegration in American Industry, Princeton, Princeton University Press.
13. Grant, R.M., Jammine, A.P. (1988), "Performance differences between Wrigley/Rumelt strategic categories", Strategic Management Journal, Vol. 9, No 4, pp.333-346.
14. Grant, R.M., Jammine, A.P., Thomas, H. (1988), "Diversity, diversification, and profitability among British manufacturing companies, 1972-1984", Academy of Management Journal, Vol. 31, No 4, pp.771-801.
15. Hadlock, C., Ryngaert, M., Thomas, S. (2001), "Corporate structure and equity offerings: Are there benefits to diversification?", Journal of Business, Vol. 74, No 4, pp.613-635.
16. Harris, M., Kriebel, C., Raviv, A. (1982), "Asymmetric information, incentives and intrafirm resource allocation", Management Science, Vol. 28, No 6, pp.604-620.
17. Heckman, J.J. (1979), "Sample selection bias as a specification error", Econométrica, Vol. 47, No 1, pp.153-161.
18. Hoskisson, R.E., Hitt, M.A. (1988), "Strategic control systems and relative R&D Investment in large multiproduct firms", Strategic Management Journal, Vol. 9, No 6, pp.605-621.
19. Jacquemin, A., Berry, C. (1979), "Entropy measure of diversification and corporate growth", Journal of Industrial Economics, Vol. 27, pp.359-370.
20. Jensen, M.C., Zajac, E.J. (2004), "Corporate elites and corporate strategy", Strategic Management Journal, Vol. 25, No 6, pp.507-524.
21. Kim, H., Hoskisson, R.E., Wan, W.P. (2004), "Power dependence, diversification and performance in keiretsu member firms", Strategic Management Journal, Vol. 25, pp.613-636.
22. Lamont, O., Polk, C. (2002), "Does Diversification Destroy Value? Evidence from the Industry Shocks", Journal of Financial Economics, Vol. 63, No 1, pp.51-77.
23. Lewellen, W. (1971), "A pure financial rationale for the conglomerate merger", Journal of Finance, Vol. 26, pp.521-545.
24. Lubatkin, M., Chatterjee, S. (1994), "Extending modern portfolio theory into the domain of corporate diversification: Does it apply?", Academy of Management Journal, Vol. 37, No 1, pp.109-136.
25. Majd, S., Myers, S. (1987), "Tax asymmetries and corporate income tax reform", Journal of Financial Economics, Vol. 12, pp.147-175.
26. Markham, J. W. (1973), Conglomerate Enterprise and Economic Performance, Cambridge, Harvard University Press.
27. Markides, C.C. (1992), "Consequences of corporate refocusing: Ex ante evidence", Academy of Management Journal, Vol. 35, No 2, pp.398-412.
28. Markides, C.C., Williamson, P.J. (1994), "Related diversification, core competences and corporate performance", Strategic Management Journal, Vol. 15, pp. Issue S2, 149-165.
29. Mayer, M. and Whittington, R. (2003), "Diversification in context: A cross-national and cross-temporal extension", Strategic Management Journal, Vol. 24, No 8-9, pp.773-781.
30. Menéndez, E., Gómez, S. (2000), "The diversification strategy: Does it create or destroy Value?", Cuadernos de Economía y Dirección de la Empresa, Vol. 7, pp.383-400.
31. Meyer, M., Milgrom, P., Roberts, J. (1992), "Organizational prospects, influence costs, and ownership changes", Journal of Economies and Management Strategy, Vol. 1, No 1, pp.9-35.
32. Miller, D.J. (2004), "Firms' technological resources and the performance effects of diversification: A longitudinal study", Strategic Management Journal, Vol. 25, No 11, pp. 1097-1119.
33. Miller, D.J. (2006), 'Technological diversity, related diversification and firm performance", Strategic Management Journal, Vol. 27, No 7, pp.601-619.
34. Montgomery, C.A. (1982), "The measure of firm diversification: some new empirical evidence", Academy of Management Journal, Vol. 25, No 2, pp.299-307.
35. Nayyar, P. (1992), "On the measurement of corporate diversification strategy: Evidence form large U.S. service firms", Strategic Management Journal, Vol. 13, No 3, pp.219-235.
36. Palepu, K. (1985), "Diversification strategy, profit performance and the entropy measure", Strategic Management Journal, Vol. 6, No 3, pp.239-255.
37. Palich, L.E., Cardinal, L.B., Miller, C.C. (2000), "Curvilinearity in the diversification-performance linkage: An examination of over three decades of research", Strategic Management Journal, Vol. 21, No 2, pp. 155-174.
38. Rajan, R., Servaes, H., Zingales, L. (2000), "The cost of diversity: The diversification discount and inefficient investment", Journal of Finance, Vol. 55, pp.35-80.
39. Ramanujan, V., Varadarajan, P. (1989), "Research on corporate diversification: A synthesis", Strategic Management Journal, Vol. 10, No 6, pp.523-551.
40. Ramírez, M.L., Espitia, M.A. (2002), "The impact of product diversification strategy on the corporate performance of large Spanish firms", Spanish Economic Review, Vol. 4, No 2, pp.119-137.
41. Rhoades, S.A. (1973), "The effect of diversification on industry profit performance in 241 manufacturing industries: 1963", Review of Economics and Statistics, Vol. 55, No 2, pp.9-24.
42. Rumelt, R.P. (1974), Strategy, Structure, and Economic Performance, Boston, Harvard Business School Press.
43. Sánchez-Bueno, M.J., Galán, J.I., Suarez-González, I. (2006), "Evolution of strategy and structure in large Spanish firm: A comparative European analysis", Universia Business Review, Vol. 11, No 1, pp.22-35.
44. Scherer, F.M. (1980), Industrial Market Structure and Economic Performance, Chicago, Rand McNally.
45. Simanavičienė, Z., Dagilienė, L. (2003), "The benefits of business combinations", Transformations in Business and Economics, Vol. 2, No 1(3), pp. 105-120.
46. Singh, M., Nejadmalayeri, A., Mathur, I. (2007), "Performance impact of business group affiliation: An analysis of the diversification-performance link in a developing economy", Journal of Business Research, Vol. 60, No 4, pp.339-347.
47. Stein, J. (1997), "Internal capital markets and the competition for corporate resource", Journal of Finance, Vol. 52, pp.111-134.
48. Stulz, R. (1990), "Managerial discretion and optimal financing policies", Journal of Financial Economics, Vol. 26, No1, pp.3-27.
49. Suárez-González, I. (1994), "Diversification strategy and firm performance in Spanish firms", Revista de Economía Aplicada, Vol. 2, pp. 103-128.
50. Tallman, S., Li, J.T. (1996), "The effects of international diversity and product diversity on the performance of multinational firms", Academy of Management Journal, Vol. 39, pp. 179-196.
51. Tanriverdi, H., Venkatraman, N. (2005), "Knowledge relatedness and the performance of multi-business firms", Strategic Management Journal, Vol. 26, No 2, pp.97-119.
52. Villalonga, B. (2004), "Does Diversification Cause the 'Diversification Discount'?", Financial Management, Vol. 33, No 1, pp.5-32.
53. Wernerfelt, B., Montgomery, C.A. (1988), 'Tobin's q and the importance of focus in firm performance", American Economic Review, Vol. 78, No 1, pp.246-250.
54. Wilhelmsson, L., McQueen, D. (1999), "Product diversity and performance: a macro study of 20 large Swedish industrial corporations", Scandinavian Journal of Management, Vol. 15, No 1, pp.43-64.
55. Williamson, O.E. (1985), The Economic Institutions of Capitalism, New York, Free Press.
56. Wooldrigde, J. (2002), Econometric Analysis of Cross Section and Panel Data, Cambridge, MIT Press.