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oai:gredos.usal.es:10366/174252025-06-05T12:40:28Zcom_10366_4201com_10366_4200com_10366_3946com_10366_3823col_10366_4203

00925njm 22002777a 4500 dc Galván, Antonio author Pindado García, Julio author De la Torre, Chabela author 2007 This paper provides evidence on how the diversification strategy impact on the firm value. Furthermore the paper studies the effect of the levels and types of diversification on the firm value. To achieve this aim, we propose a value model that incorporates the level and type of diversification. The estimation of the model by using the Generalized Method of Moments provides interesting results. Consistent with the value-destroying expectations, we find a reduction in the value of the diversified companies in the eurozone countries, however there is a non linear relationship between the diversification and value, giving rise to an optimal level of diversification. Moreover our results support that related diversification is more value-creating than non-related diversification. Additionally we test the effect of diversification of market valuation by focusing on the discount that diversified firms trade at, then a value destroying is achieved for the diversified companies in our sample, and we also have evidence on the hypothesis that relatedness moderates the value loss from diversification. Galván, A., Pindado, J., y Torre, C. (2007). Diversification: Value-Creating or Value-Destroying Strategy? Evidence from Using Panel Data. "Nuevas Tendencias en Dirección de Empresas", 01/07. Retrieved mayo 8, 2009, from http://www.eco.uva.es/empresa/uploads/dt_01_07.pdf http://hdl.handle.net/10366/17425 http://hdl.handle.net/10366/17425 Diversificación corporativa Firma Corporate diversification Relatedness Firm value Excess value Diversification: Value-Creating or Value-Destroying Strategy? Evidence from Using Panel Data