THE EFFECTS OF DIVERSIFICATION STRATEGY ON FIRM VALUE AND FINANCIAL PERFORMANCE IN BRAZILIAN INDUSTRIES

Authors

  • Wesley Mendes da Silva Universidade Federal de Pernambuco - UFPE

DOI:

https://doi.org/10.14210/alcance.v12n1.p79-98

Abstract

This paper verifies the existence of association among diversification strategy, firm value and its financial performance in Brazilian industries. In a multiple cross-section study, from 1997 and 2001, data were gathered for 176 publicly traded firms, listed in BOVESPA stock market in 14 industrial segments. Results showed that, for one of the 5-year period, both high and low diversified firms achieved performance higher than firms with intermediate levels of concentration. Large firms showed higher value and financial performance.

Downloads

Published

2008-09-04

Issue

Vol. 12 No. 1(Jan-Abr) (2005)

Section

Article

License

In this statement of responsibility, I/we certify that I/we participated in the preparation of the attached article, thus making my/our responsibility for its content public. I/we declare that we have not omitted any links or financing agreements between me/us and entities and/or institutions that may have an interest in the publication of this article. I/we certify that the article is original and the work, either in total or in part, or any other work of my/our authorship with substantially similar content, has not been nor will be sent in any format (printed or electronic) to another periodical while its publication is being considered by Revista Alcance. In this consent form, the associated authors give permission to Revista Alcance, in the case of approval by its Editorial Board, to publish the attached article in electronic copy in a regular edition of the journal and to load it to the database.