• Abstract

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

    Published date: 04/09/2008
    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.

Revista Alcance

Revista Alcance is a Brazilian free access journal, published every four months, linked to the Graduate Program in Administration and the Professional Master’s degree in Administration, Internationalization and Logistics Program of the University of Vale do Itajaí – Univali. We seek to publish theoretical-empirical and technological articles in the areas of Business Administration. Different theoretical and methodological perspectives are welcome, as long as they are consistent with and relevant to the development of the area.

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