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Does Managerial Ability Affect Corporate Diversification Strategies and Corporate Diversification Performance? Evidence from the US

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  • Hui-Wen Hsu

Abstract

This study investigates whether managerial ability affects the degree of corporate diversification. Further, it examines whether the performance effect of diversification depends on managerial ability. Using a sample of US firms from 2013 to 2017, this study finds that managerial ability is negatively correlated with corporate diversification strategies. This study also found that managerial ability positively moderates the relationship between diversification and firm performance. Â JEL classification numbers: G34, M41.

Suggested Citation

  • Hui-Wen Hsu, 2023. "Does Managerial Ability Affect Corporate Diversification Strategies and Corporate Diversification Performance? Evidence from the US," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(1), pages 1-4.
    • Handle: RePEc:spt:apfiba:v:13:y:2023:i:1:f:13_1_4
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate diversification strategies; Managerial ability; Corporate diversification performance.;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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