The effects of international diversification on the link between product diversification and performance in a boom and bust cycle: Evidence from Spanish firms (1994–2014)

2019 ◽  
Vol 25 (4) ◽  
pp. 100687 ◽  
Author(s):  
José Ángel Zúñiga-Vicente ◽  
Diana Benito-Osorio ◽  
Luis Ángel Guerras-Martín ◽  
Alberto Colino
Keyword(s):  
International Diversification ◽  
Product Diversification ◽  
Boom And Bust ◽  
And Performance ◽  
Boom And Bust Cycle

scholarly journals The combined effects of product and geographical diversification on performance: Evidence in manufacturing SMEs

2020 ◽  
Vol 23 (2) ◽  
pp. 91-106
Author(s):  
Diana Benito-Osorio ◽  
Alberto Colino ◽  
Luis Ángel Guerras-Martín ◽  
José Ángel Zúñiga-Vicente
Keyword(s):  
International Diversification ◽  
Jel Classification ◽  
Dynamic Panel Data ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Diversification Strategies ◽  
Statistical Support ◽  
And Performance ◽  
The Individual ◽  
Geographical Diversification

This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises’ (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994–2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted. JEL CLASSIFICATION: F23; L25; M16

scholarly journals Love is blind: partisan alignment and political corruption in Spain

SERIEs ◽  
2021 ◽  
Author(s):  
Miguel Ángel Borrella-Mas ◽  
Martin Rode
Keyword(s):  
Public Discourse ◽  
Local Level ◽  
Political Process ◽  
Real Estate Industry ◽  
Local Politicians ◽  
Boom And Bust ◽  
Boom And Bust Cycle ◽  
Regional Elections ◽  
Municipal Level ◽  
Do So

AbstractEver since the spectacular boom and bust cycle of the Spanish real estate industry, endemic corruption at the local level has become a widely recognized problem in the national public discourse. In an effort to expose an under-explored political determinant, this paper investigates the effect of local and regional alignment in fomenting corruption at the Spanish municipal level. To do so, we construct an ample panel dataset on the prevalence of corrupt practices by local politicians, which is employed to test the possible impact of partisan alignment in three consecutive joint municipal and regional elections. Findings show aligned municipalities to be more corrupt than non-aligned ones, an effect that is further associated with absolute majorities at both levels of government and higher capital transfers. By contrast, we also show that “throwing the rascals out” could be an effective strategy for curbing the corrupt practices of aligned municipalities. This indicates that the democratic political process may be effective in corruption control if agreements can be reached to remove corrupt politicians or parties from power.

How do resources and diversification strategy explain the performance consequences of internationalization?

2014 ◽  
Vol 52 (5) ◽  
pp. 897-915 ◽  
Author(s):  
Yan Chen ◽  
Yiwei Jiang ◽  
Chengqi Wang ◽  
Wen Chung Hsu
Keyword(s):  
Emerging Market ◽  
Product Diversification ◽  
Firm Resources ◽  
Diversification Strategy ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Performance Consequences ◽  
Performance Effects ◽  
And Performance

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.

Do service firms benefit from diversification? the moderating effect of competitive intensity and firm size

2012 ◽  
pp. 87-103
Author(s):  
Claudio Giachetti
Keyword(s):  
Firm Performance ◽  
Facility Management ◽  
Moderating Effect ◽  
Product Diversification ◽  
Service Firms ◽  
Competitive Intensity ◽  
Time Period ◽  
And Performance ◽  
Levels Of Service ◽  
The Impact

Despite much ado about the effectiveness of ‘product' diversification, there is very limited knowledge about the impact of ‘service' diversification on firm performance. By taking a resource-based perspective, this study explores the service diversificationperformance relationship. Results show a consistent inverse U-shaped relationship between service diversification and firm performance, with the slope positive at low and moderate levels of service diversification but negative at high levels of service diversification. Moreover, results show that competitive intensity negatively moderates the relationship between service diversification and performance, while the moderating effect of firm's size is not significant. Hypotheses are tested with data on 52 Italian facility management firms over the 2000-2009 time period.

Financial Development and the Credit Cycle in Greece1

2017 ◽  
Author(s):  
Michael Haliassos ◽  
Gikas Hardouvelis ◽  
Margarita Tsoutsoura ◽  
Dimitri Vayanos
Keyword(s):  
Financial Regulation ◽  
Financial System ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Debt Overhang ◽  
Boom And Bust ◽  
Greek Economy ◽  
The Cost ◽  
Long Term Performance ◽  
Boom And Bust Cycle

This chapter reviews the developments in Greece's financial system since the beginning of the crisis. The chapter places them in a broader context by (i) evaluating the long-term performance of Greece's financial system in comparison to other countries, and (ii) reviewing the credit boom-and-bust cycle that Greece has experienced since Euro entry. Risks in the Greek economy remain overly concentrated to those originating them and are not well diversified. By raising the cost of equity capital for firms, this impedes investment. It also drives up corporate leverage, thus making the economy more vulnerable to shocks. These vulnerabilities manifested themselves even before the sovereign crisis hit. Strengthening investor protection, through improvements in the justice system and financial regulation, is an important part of the solution. In the shorter run, the debt overhang problem in the private sector should be addressed. The chapter discusses policy options to achieve these goals.

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