Product diversification and stability of employment and sales: first evidence from German manufacturing firms
In this study, we use a unique rich newly built data set for German manufacturing enterprises to investigate the relationship between product diversification and the stability of sales and employment. We find that contrary to portfolio theoretic considerations, more diversified firms exhibit a higher variability of sales and employment. However, the effects are negligibly small from an economics point of view.
Volume (Year): 43 (2011)
Issue (Month): 27 ()
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- Martin Gornig & Bernd GÃ¶rzig, 2007. "VerstÃ¤rkte Spezialisierung deutscher Unternehmen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 74(20), pages 333-335.
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- Nils Braakmann & Joachim Wagner, 2009. "Product Differentiation and Profitability in German Manufacturing Firms," Working Paper Series in Economics 115, University of Lüneburg, Institute of Economics.
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