This research examines the relationship between corporate diversification and firm performance by taking both the benefits and costs of diversification into account. It tests the hypothesis that there is a curvilinear relationship between corporate diversification and firm performance. Firm diversification is measured using the number of reported business segments by firms, and firm performance is measured by using profitability ratios. Using a cross-sectional sample of 97 firms for the years 2003 and 2005, the empirical findings of this research reveal inconclusive evidence, indicating no precise relationship between corporate diversification and firm performance.
Raza, Ali, "Is Corporate Diversification a Fatal Attraction? Evidence From U.S. Firms" (2008). Senior Independent Study Theses. Paper 733.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2008 Ali Raza