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

Maurizio La Rocca, Tiziana La Rocca, Javier Sánchez Vidal

• 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.