The objectives of this research are two: to understand, if Government grants create favorable\nconditions for enterprises which mean to promote diversification process by increasing range\nof company products; and to understand if diversification strategy, stimulated by public\ngrants, can lead to a growth of company value. This research is carried out through the\nbalance sheets of the data-base AIDA and analysis of questionnaires submitted to a sample of\n100 small and medium-sized enterprises located in Molise Region (Italy), operating in the\nagro-alimentary sector, and which benefited from public grants during the period 2007-2008.\nThe analysis covering the period 2003-2014. The empirical evidence from January 2003 to\nDecember 2014 indicates a strong relationship between Government grant, strategy\ndiversification and growth of enterprise value. It should be emphasized that present work\nlimits its field of investigation to a few variables without fully addressing other elements of\nuncertainty that may adversely affect on SME�s EVA. This work will be useful to stimulate\ndebate on policies to support SMEs. The originality of this study is the correlation between\npublic grants, corporate strategies and added economic value.
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