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Diversification Strategies (diversification + strategy)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	75%

Selected Abstracts

Geographic and Industrial Diversification of Developing Country Firms*

JOURNAL OF MANAGEMENT STUDIES, Issue 2 2004
Lilach Nachum
ABSTRACT This paper examines the impact of the industrial and geographical diversification activities of developing country firms on their performance, and draws attention to the unique attributes of these firms and of the circumstances under which their diversification activities take place. The empirical analysis is based on data from 345 developing country firms. The findings suggest significant and positive association between industrial and geographic diversification and performance, and considerable variation of these relationships across developing regions and diversification strategies. [source]

Efficacy of the R2 resistance gene as a component for the durable management of potato late blight in France

PLANT PATHOLOGY, Issue 6 2005
F. Pilet
Many race-specific resistance genes to potato late blight are overcome in France, but the disease appears later on genotypes carrying the R2 gene. This study examined whether R2 could contribute to durable late-blight control in France, and analysed the conditions of its performance. Plants grown from tubers of different physiological ages showed no difference in R2 expression in field and climate-chamber experiments, demonstrating that the delay in epidemic onset provided by R2 was not the result of gene inactivation in old plants. Among isolates collected at one site, those virulent on R2 were classified into three AFLP profiles. AFLP-VII comprised exclusively isolates virulent to R2, whereas AFLP-IV and AFLP-V included both virulent and avirulent isolates. No significant aggressiveness differences were observed between virulent and avirulent isolates from AFLP-V; however, isolates from AFLP-VII were significantly less aggressive than virulent isolates from AFLP-V. These results indicate that: (i) the delayed onset of epidemics on R2 cultivars is the result of the breakdown of R2 by virulent isolates; (ii) aggressiveness of isolates virulent to R2 depends primarily on the genetic background of the pathogen where the mutation to virulence occurs; and (iii) this mutation does not lead per se to lower pathogenic fitness. It is suggested that R2 is unlikely to make a lasting contribution to late-blight control in France, and that diversification strategies such as cultivar mixtures might not considerably increase its durability. [source]

Optimal Diversification: Reconciling Theory and Evidence

THE JOURNAL OF FINANCE, Issue 2 2004
Joao Gomes
ABSTRACT In this paper we show that the main empirical findings about firm diversification and performance are consistent with the maximization of shareholder value. In our model, diversification allows a firm to explore better productive opportunities while taking advantage of synergies. By explicitly linking the diversification strategies of the firm to differences in size and productivity, our model provides a natural laboratory to investigate several aspects of the relationship between diversification and performance. Specifically, we show that our model can rationalize the evidence on the diversification discount (Lang and Stulz (1994)) and the documented relation between diversification and productivity (Schoar (2002)). [source]

The Dynamics of Diversification Discount,

ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 2 2009
Seoungpil Ahn
Abstract Using a sample of diversified firms over the period of 1980,2003, I investigate changes in the diversification discount over the two decades. The time-series pattern of the diversification discount is created by the entrance and exit of discount firms. I find that the distribution of excess value can correctly predict the survivalship of a diversified firm. Discount firms are more likely to reverse their diversification within short time period. By contrast, the survival of diversification strategies among premium firms and focused firms is unrelated to the firms' excess values. After accounting for value effects, premium firms perform better than focused firms and discount firms. I interpret the results as evidence that excess value can correctly identify these firms that are successful and unsuccessful in their diversification. [source]

Effect of diversification on capital structure

ACCOUNTING & FINANCE, Issue 4 2009
Maurizio La Rocca
G30; G32 Abstract Previous empirical financial studies have paid little attention to the role of diversification strategy on financial choices. This study analyses the financing strategies of multibusiness firms, suggesting the relevance of sorting the diversification phenomena into its related and unrelated components. The implications of our findings are important because they explain earlier contradictory results on capital-structure determinants and offer an explanation of how the degree of product specialization/diversification and the direction of diversification (related or unrelated) translate into different corporate financial behaviours. [source]

Geographic diversification strategy and the implications of global market integration in table grapes

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2002
Angela M. Krueger
The geographic diversification mode for U.S. agribusinesses to establish an international presence is examined, using the example of table grapes. This study extends the analytical work on geographic diversification strategy in a firm-level application that considers how longer marketing seasons might affect early-season premium prices. The method draws on market integration tests from the industrial organization literature. The extent of market integration is examined using a probabilistic measure. Then, a simulation of profit incorporates the probability that markets are integrated. Tests on the market for table grapes indicate high probability that markets for domestic grapes and imports from Chile are not integrated (0.81 and 0.91). Long distances and the lack of overlap in production seasons play key roles in this finding. The simulation that makes operational the findings of limited integration suggests that geographic diversification is more profitable and of lower risk than production in California alone. [JEL Classification: Q130, Q170, F140] © 2002 Wiley Periodicals, Inc. [source]

Household income diversification and the production of local meat: the prospect of small-scale pig farming in Southern Yunnan, China

AREA, Issue 3 2009
Harvey Neo
This paper assesses the viability of small scale, specialised livestock farming led by the local government, to alleviate rural household poverty. In so doing, it reflects upon the prospect of niche livestock farming in an age where, ironically, demand for meat is ever-rising. It also highlights the ambiguous role that local government plays in poverty alleviation. The specific case study is on the Jinuo ethnic minority in Xishuangbanna autonomous region, located in Southwestern province of Yunnan, China. It is argued that thus far the Jinuo minority have had modest success in rearing indigenous pigs due to a confluence of factors. Nonetheless, a growing market will likely result in some degree of intensification in the production process that goes beyond the means of the upland farmers but will be eagerly exploited by the local government. If the pig rearing scheme is to remain an effective income diversification strategy in select marginalised mountainous communities, the march towards commodification, expansion and intensification, as well as the unchecked ambition of the local government, have to be carefully moderated. [source]