| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5107331 | Research in International Business and Finance | 2017 | 26 Pages |
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Alex Kwaku Gyan, Rayenda Brahmana, Abdul Karim Bakri,