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Diversification and financial performance in Bursa Malaysia

Doaei, Meysam and Ahmad Anuar, Melati and Ismail, Zuhaimy (2014) Diversification and financial performance in Bursa Malaysia. International Journal of Management Business Research, 4 (4). pp. 309-317. ISSN 2228-7027

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Firms pursue diversification for sake enhancing financial performance. Some theories state positive relationship between diversification and financial performance. However, there are some theories for negative relationship about the issue. The study has filled the gap that most studies done in developed countries and there are fewer studies in developing country like Malaysia. In this study, researchers try to examine the relationship between product diversification and international diversification with financial performance in manufacturing firms listed in Bursa Malaysia. The study is done in 102 manufacturing firms listed in Bursa Malaysia during 2006 to 2010. Two regression models are run with return on assets (ROA) as a dependent variable. Also, the main independent variables are total product diversification (TPD), related product diversification (RPD), unrelated product diversification (UPD), international diversification (ID). The results show product diversification and unrelated diversification are not significant; however, related diversification and international diversification have negative impact on financial performance.

Item Type:Article
Uncontrolled Keywords:international diversification, related diversification, unrelated diversification financial performance
Subjects:H Social Sciences > HG Finance
ID Code:59695
Deposited By: Haliza Zainal
Deposited On:23 Jan 2017 00:24
Last Modified:28 Feb 2022 09:22

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