Title

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

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

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

Research Themes

Society and Culture

Priority Areas

Individual, economic, organisational, political and social transformation

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