Abstract
We investigate further the inconsistencies of the diversification-performance link by introducing efficiency as moderating factor. A data of 319 firms was used to conduct a panel data analysis excluding the financial sector industries and the results show three important findings. First, industrial diversification shows a significant contribution in performance improvement while international diversification shows no effect on performance. Yet, international-conglomerate shows a significant negative relationship with performance. Meanwhile, the efficiency results are contrary to our conjecture. We find that efficiency is a factor to enhance performance, but it is not the moderating variable on the diversification-performance link. This implies that the efficiency of the firm has no connection with the link between diversification and performance.
| Original language | English |
|---|---|
| Pages (from-to) | 1103-1114 |
| Number of pages | 12 |
| Journal | Research in International Business and Finance |
| Volume | 42 |
| Early online date | 8 Jul 2017 |
| DOIs | |
| Publication status | Published - Dec 2017 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2017 Elsevier B.V.
Keywords
- Corporate strategy
- Diversification
- Efficiency
- Firm performance
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Finance
