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Impact of Diversification on Firms’ Performance

Author

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  • Iqbal, Athar
  • Hameed, Irfan
  • Qadeer, Majid

Abstract

The data was collected through secondary research and Stock Exchanges sites were the source of information to collect the data of the companies. Total 40 companies were selected on the basis of Specialization Ratio (SR). Companies whose information were available and remained in the same category for the entire 5 years (2005-2009) were included in sample. The results of this study showed that there is no positive relationship between diversification and firms’ performance. All firms are performing equally whether they are highly diversified firms, moderately diversified firms or less diversified firms with respect to their return and risk dimensions.

Suggested Citation

  • Iqbal, Athar & Hameed, Irfan & Qadeer, Majid, 2012. "Impact of Diversification on Firms’ Performance," MPRA Paper 57240, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57240
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    File URL: https://mpra.ub.uni-muenchen.de/57240/1/MPRA_paper_57240.pdf
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    References listed on IDEAS

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    1. repec:bla:econom:v:60:y:1993:i:238:p:203-24 is not listed on IDEAS
    2. Soomro, Yasir & Hameed, Irfan & Hameed, Imran, 2012. "A Functional Approach to Understand Consumer Behavior while Selecting Coffee Parlor," MPRA Paper 57241, University Library of Munich, Germany.
    3. Soomro, Yasir & Hameed, Irfan & Butt, Atif & Shakoor, Rehan, 2012. "Significance of Internet Marketing in Promoting Consumer Goods in Subcontinent," MPRA Paper 56995, University Library of Munich, Germany, revised 01 Jun 2012.
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    Cited by:

    1. Baaren, Terence & Galloway, Cornelia, 2014. "Consequence of Job Satisfaction Factors on the Productivity Level of Operating Core," MPRA Paper 57186, University Library of Munich, Germany.
    2. Soomro, Yasir & Hameed, Irfan & Butt, Atif & Shakoor, Rehan, 2012. "Significance of Internet Marketing in Promoting Consumer Goods in Subcontinent," MPRA Paper 56995, University Library of Munich, Germany, revised 01 Jun 2012.
    3. Wing, Albert & Wilk, Shaun, 2019. "Social Responsibility of Recycling," MPRA Paper 93842, University Library of Munich, Germany.
    4. Soomro, Yasir & Abbas, Sana & Hameed, Irfan & Shakoor, Rehan, 2012. "Consumer evaluation of brand extension: Pakistani Context," MPRA Paper 57416, University Library of Munich, Germany.
    5. Wayne, George & Darrel, Percy, 2013. "Team Performance in a Fractious Culture," MPRA Paper 58051, University Library of Munich, Germany.

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    More about this item

    Keywords

    FIRMS’ DIVERSIFICATION; PERFORMANCE; RISK; RETURN DIMENSIONS;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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