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Responsible Diversification: Knowing Enough About Diversification To Do It Responsibly: Motives, Measures And Consequences

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  • Ma. Belén Lozano García
  • Alberto de Miguel Hidalgo
  • Diana Monserrat Ríos Rodríguez

Abstract

Diversifying in a responsible way is a challenge that many firms face today. In this survey we posit whether firms should diversify and whether it is a way to create value, since the motives leading to diversification are not always addressed to satisfying all stakeholders, and as a consequence the outcome may be different from the one expected. Our aim is to smooth the way for managers, shareholders, professionals and decision-makers in general by offering an exhaustive and rigorous description of the lessons provided by the literature, analyzing the reasons for diversifying or not, describing the costs and benefits of the process and analyzing the discount on firm value.

Suggested Citation

  • Ma. Belén Lozano García & Alberto de Miguel Hidalgo & Diana Monserrat Ríos Rodríguez, 2013. "Responsible Diversification: Knowing Enough About Diversification To Do It Responsibly: Motives, Measures And Consequences," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(15), pages 1-19.
    • Handle: RePEc:alu:journl:v:1:y:2013:i:15:p:19
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    More about this item

    Keywords

    value creation; diversification; discount; responsible strategic decision-making;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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