Related diversification, firm level resources, and firm performance in the context of Australian extractive industry
Document Type
Journal Article
Publication Title
Journal of Corporate Accounting and Finance
Volume
33
Issue
2
First Page
142
Last Page
153
Publisher
Wiley
School
School of Business and Law
RAS ID
43790
Abstract
Related diversification literature highlights that the reason why corporations pursue this specific type of diversification is to achieve synergistic benefits through sharing common resources efficiently across related business units for higher financial performance. However, it is unclear whether this performance is influenced by the level of firm resources that a firm possesses. Using data from Australian extractive industry, this study assesses the heterogeneity of firm resource-possession in relation to firm performance and found that related diversified firms that possess higher resource levels extract larger proportion of synergistic advantage to enhance financial performance. The study has discussed key theoretical and practical implications.
DOI
10.1002/jcaf.22541
Access Rights
subscription content
Comments
Gyan, K. A., & Jan‐Bezemer, P. (2022). Related diversification, firm level resources, and firm performance in the context of Australian extractive industry. Journal of Corporate Accounting & Finance, 33(2), 142-153. https://doi.org/10.1002/jcaf.22541