Effect of Diversification on Firm’s Performance: An Indian perspective

Effect of Diversification on Firm’s Performance: An Indian perspective - A research study

Abstract:

Despite considerable attention being devoted to the relationship between corporate diversification and firm performance, much of prior research has generally assumed away the impact of differences is in the organizational form of firms. This research study analyses the association between diversification and firm performance in a sample of up to 87 large Indian firms listed in Bombay Stock Exchange. Firm performance is measured by profitability ratios and for that ROCE and RONW is considered. Results from the sample show that more focused firms have higher profitability. This result controls for firm specific effects and other determinants of profitability. The results may indicate that listed firms may be under closer scrutiny and competitive pressures that ensure, on average, that these firms are at their optimal degree of diversification.

Keywords: diversification,performance, firm.

This is research study that I done in Business Research Methods course. Yet in IMT you have to do so many researches and projects yet this is only one in this sem that I was dedicated to. I am also posting a link of complete PDF file for reference.

http://devendragarg.freehost10.com/BRMProject.pdf