Quality & Quantity

, Volume 45, Issue 1, pp 59–73 | Cite as

Diversification strategy, CEO management style and firm performance: an application of Heckman’s two-stage method

  • Almudena Martínez-Campillo
  • Roberto Fernández-Gago


This paper aims to explore whether CEOs’ management style as agents or as stewards, which depends on their psychological and situational characteristics, moderates the effect of the diversification strategy on firm performance. After applying Heckman’s two-stage method to control econometrically for endogeneity bias in empirical work, results demonstrate that the relationship between diversification and profitability varies significantly depending on the management style of the diversifying CEO.


Diversification strategy CEO management style Firm performance Heckman’s two-stage method 


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Copyright information

© Springer Science+Business Media B.V. 2010

Authors and Affiliations

  • Almudena Martínez-Campillo
    • 1
  • Roberto Fernández-Gago
    • 1
  1. 1.Facultad de CC. Económicas y EmpresarialesUniversity of LeónLeónSpain

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