This research explores whether product and geographic diversification decisions are explained by free cash flow arguments or internal capital market perspectives. The findings indicate, as a net effect, the dominant role of internal capital market considerations, notably significant for the choice to diversify unconnected and unlisted enterprises, using a unique panel of hand-collected data from Italian firms (listed and unlisted) during the period 1980-2010.
Author(S) Details
Maurizio La Rocca
University of Calabria, Dip.to di Scienze Aziendali e Giuridiche, Cubo 3-C, Ponte P. Bucci, 87036 Rende, Cosenza, Italy.
Tiziana La Rocca
Università di Messina, Dip.to di Economia, Piazza Pugliese, 98122, Messina, Italy.
Francesco Fasano
University of Calabria, Dip.to di Scienze Aziendali e Giuridiche, Cubo 3-C, Ponte P. Bucci, 87036 Rende, Cosenza, Italy.
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