Canadian Institute For Knowledge Development
  • Register
  • Login

International Journal of Organizational Leadership

Notice

As part of Open Journals’ initiatives, we create website for scholarly open access journals. If you are responsible for this journal and would like to know more about how to use the editorial system, please visit our website at https://ejournalplus.com or
send us an email to info@ejournalplus.com

We will contact you soon

  1. Home
  2. Volume 5, Issue 4
  3. Authors

Current Issue

By Issue

By Subject

Keyword Index

Author Index

Indexing Databases XML

About Journal

Aims and Scope

Editorial Board

Indexing and Abstracting

Related Links

Peer Review Process

News

Corporate diversification and firm performance: An inverted U-shaped hypothesis

    Sajid Ali Shujahat Haider Hashmi Tahir Mehmood

International Journal of Organizational Leadership, 2016, Volume 5, Issue 4, Pages 393-410
10.33844/ijol.2016.60389

  • Show Article
  • Download
  • Cite
  • Statistics
  • Share

Abstract

This study aimed to investigate the relationship between corporate diversification and firm performance in a developing country. Previous studies have found that the mixed results have been established between these two constructs in developed countries such as linear, u-shaped or inverted u-shaped relationship. To this end, a sample of 141 non-financial companies over the period of 2003 to 2013 listed on Pakistani stock market was used to analyze the impact of diversification strategy on the performance of firm. Corporate diversification is divided into two types including product and geographic diversification. The findings of the study demonstrated that an inverted u-shaped relationship existed as performance increased up to a certain level due to the related diversification strategy and then it fell down drastically. It showed that too much diversification creates agency problems and internal inefficiencies. It has implications for agency problems, weak corporate governance structures, and family relationships.
Keywords:
    Product Diversification Geographic Diversification Firm Performance Inverted U-Shaped Relationship
  • PDF
  • XML
Sajid Ali, Shujahat Haider Hashmi, Tahir Mehmood (2016). Corporate diversification and firm performance: An inverted U-shaped hypothesis. International Journal of Organizational Leadership, 5(4), 393-410. doi: 10.33844/ijol.2016.60389
Sajid Ali; Shujahat Haider Hashmi; Tahir Mehmood. "Corporate diversification and firm performance: An inverted U-shaped hypothesis". International Journal of Organizational Leadership, 5, 4, 2016, 393-410. doi: 10.33844/ijol.2016.60389
Sajid Ali, Shujahat Haider Hashmi, Tahir Mehmood (2016). 'Corporate diversification and firm performance: An inverted U-shaped hypothesis', International Journal of Organizational Leadership, 5(4), pp. 393-410. doi: 10.33844/ijol.2016.60389
Sajid Ali, Shujahat Haider Hashmi, Tahir Mehmood Corporate diversification and firm performance: An inverted U-shaped hypothesis. International Journal of Organizational Leadership, 2016; 5(4): 393-410. doi: 10.33844/ijol.2016.60389
  • RIS
  • EndNote
  • BibTeX
  • APA
  • MLA
  • Harvard
  • Vancouver
  • Article View: 601
  • PDF Download: 1,653
  • LinkedIn
  • Twitter
  • Facebook
  • Google
  • Telegram
  • Home
  • Glossary
  • News
  • Aims and Scope
  • Privacy Policy
  • Sitemap

 About Publisher

This journal is licensed under a Creative Commons Attribution 4.0 International (CC-BY 4.0)

Powered by eJournalPlus