Impact of Diversification on Firms’ Performance

American Journal of Scientific Research, 80, 42-53, 2012

12 Pages Posted: 12 Jul 2014

See all articles by Athar Iqbal

Athar Iqbal

IQRA University

Dr. Irfan Hameed

Iqra University

Majid Qadeer

IQRA University

Date Written: December 1, 2012

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 and Hameed, Irfan and Qadeer, Majid, Impact of Diversification on Firms’ Performance (December 1, 2012). American Journal of Scientific Research, 80, 42-53, 2012, Available at SSRN: https://ssrn.com/abstract=2464717

Athar Iqbal

IQRA University ( email )

Defence View
Shaheed-e-Millat Road (Ext.)
Karachi, Sindh 75500
Pakistan

Irfan Hameed (Contact Author)

Iqra University ( email )

Defence View, Phase-2
Karachi, Sindh
Pakistan

Majid Qadeer

IQRA University ( email )

Defence View
Shaheed-e-Millat Road (Ext.)
Karachi, Sindh 75500
Pakistan

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