CORPORATE DIVERSIFICATION AND PERFORMANCE

Authors

  • Wan Mohd Nazri Wan Daud Faculty of Business & Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim,Perak, Malaysia
  • Norhana Salamudin Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
  • Ismail Ahmad Faculty of Business Management, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia

Keywords:

Corporate strategy, diversification, performance

Abstract

Business diversification has drawn attention of strategic management and finance scholars.  This study examines relationship between diversification effect on performance using multiple measures of performance namely accounting and market measurements. The study used panel data analysis for a sample of 70 Malaysian firms from various industries during the period 2001 to 2005.The evidence produces some interesting findings with regard to risk factors and effect on firm’s performance while other factors are consistent with previous findings. In particular, firms that adopt the focused strategy perform better than those with diversified strategy. Different measures of performance used in the study produces varying results after controlling for risk, firm size and economic condition, using inflation rate as a proxy.

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Published

2009-12-01

How to Cite

Wan Daud, W. M. N., Salamudin, N., & Ahmad, I. (2009). CORPORATE DIVERSIFICATION AND PERFORMANCE. International Business Education Journal, 2, 1–16. Retrieved from https://ojs.upsi.edu.my/index.php/IBEJ/article/view/1472