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This paper examines the moderating effect of family involvement in ownership and control on the relationship between diversification strategies - both product and international diversification - and corporate performance. We argue that this moderating effect is related to the distinctive characteristics of family firms compared to non-family firms. The empirical evidence is provided by a sample of firms from the European Union during the 2005-2009 time period. Our results found that family firms are more profitable than non-family firms when they engage in joint product and international diversification.
family firms; product diversification; international diversification; performance; eu