The purpose of this paper is to investigate the relationships between related and unrelated corporate diversification and financial drivers by comparing listed and unlisted Italian firms. The agency costs of free cash flow and the internal capital market perspective help to explain these relationships. This research study adopts a quantitative approach and uses a unique panel of hand-collected data on Italian firms for the period from 1980 to 2006. The results of the applied model used in this paper reveal the benefits which arise from an efficient internal capital market. These benefits are especially relevant for unrelated diversification decision-making and for unlisted firms. The findings of this paper are confirmed by an analysis of the performances of the sample firms.

The Effects Of Financial Drivers On Corporate Diversification: A Comparison Of Listed And Unlisted Italian Firms

LA ROCCA, Maurizio;CARIOLA, Alfio;
2013-01-01

Abstract

The purpose of this paper is to investigate the relationships between related and unrelated corporate diversification and financial drivers by comparing listed and unlisted Italian firms. The agency costs of free cash flow and the internal capital market perspective help to explain these relationships. This research study adopts a quantitative approach and uses a unique panel of hand-collected data on Italian firms for the period from 1980 to 2006. The results of the applied model used in this paper reveal the benefits which arise from an efficient internal capital market. These benefits are especially relevant for unrelated diversification decision-making and for unlisted firms. The findings of this paper are confirmed by an analysis of the performances of the sample firms.
2013
Diversification; Financial drivers; Listed firms
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/141007
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? ND
social impact