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Data · dataset · 2017

Diversified Company Performance: Evidence from the United States Airline Industry

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Abstract

This paper analyzes the effect related diversification strategy has on firm performance. Based on a sample of 70% of US airlines, this piece of research investigates the relationship between the degree of diversification and corporate profitability. Multiple linear regression models of panel data (i.e., 6 years) were tested, with model parameters estimated by the Generalized Method of Moments (GMM) technique.

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We identified that firm performance followed an inverted-U curvilinear pattern. That is, boundary-spanning activities of related diversified firms increase coordination efforts to the extent that, at some point, the benefits of this strategy are offset.

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Economics and business

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DataCite10.6084/m9.figshare.571996310 d agoJSON v1
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