| Sales Growth and Global Diversification Effects |
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Taek Ho Kwon, Sung C. Bae, Soonhong Park |
| 매출성장과 지리적 다각화 효과 |
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권택호, 배성철, 박순홍 |
1충남대학교
2Bowling Green State University |
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| Abstract |
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We examine the characteristics and valuation effects of global diversification for thirty-nine countries using firm level data for the period of 1990~2015. In particular, we test how the global diversification effects are related to firms’ industry-adjusted sales growth. Our data show that while product diversification steadily declines, global diversification increases continuously during the sample period. We find that there is on average a diversification discount in global diversification whose evidence is similar to that for product diversification. However, we also find a diversification premium in global diversification in two circumstances: when the global diversification is conducted by firms with high industry-adjusted sales growth; and when firms refocus by reducing global diversification in the face of declining sales. The results of our paper suggest that firm characteristics such as sales growth need to be considered before making a diversification decision in order to get a positive effect from global diversification. |
| Key Words:
지리적 다각화,매출성장,다각화 프리미엄,다각화 할인,재집중화,Global Diversification,Sales Growth,Diversification Premium,Diversification Discount,Refocusing |
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