Diversification and corporate social performance in manufacturing companies

Patrisia, Dina; Dastgir, Shabbir

doi:10.1007/s40821-016-0052-6

Cited by 31 publications

(42 citation statements)

References 79 publications

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“…Referring to the stakeholder theory, diversification will implicate to the increasing number and types of stakeholder, so diversified companies will interact and it is possible to gain more benefit from the stakeholders compared to non-diversified companies [6]. Diversification happens when a company enters a new industry [26]; a new business segment [5] , or runs more than one business [4]. Diversification is differentiated into product diversification and geographic diversification [12], [27].…”

Section: Diversificationmentioning

confidence: 99%

“…One of the strategies that can be applied in order to avoid and reduce the level of financial distress is diversification. Diversification happens when a company runs more than one business or industry [4]. Referring to the Resource Based View Theory, diversification is an important strategy to create competitive advantage and to survive in the business competition [5], [6].…”

Section: Introductionmentioning

confidence: 99%

“…Many of the previous studies about diversification focus on the effect of diversification toward financial performance (profitability) [14]- [17]. The weakness of financial performance measurement is only focused on the shareholders wealth [4]. The funding resource of a company is obtained not only from the shareholders, but also from the creditors.…”

Section: Introductionmentioning

confidence: 99%

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Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

Nugrahanti¹,

Sutrisno²,

Rahman³

et al. 2019

Proceedings of the Proceedings of the 1st Sampoerna University-Afbe International Conference, SU-AFBE 2018, 6-7 December 2018,

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The objective of this study is to investigate the effect of diversification strategy towards the level of financial distress. Altman Z-score is used to measure the level of financial distress and Herfindahl index is used to measure diversification in this research. This study used 101 non-financial companies listed in Indonesian Stock Exchange during 2014-2016 (303 firm years) as samples. For testing the hypotheses, Mann Whitney test and panel data regression with random effect model was used. The results showed that there are Z score differences between high and low diversified firms; and diversification has a negative effect towards the level of financial distress. The control variables testing showed that liquidity, profitability, and firm size negatively influence the level of financial distress, while leverage has a positive effect towards the level of financial distress. Besides, the type of diversification has no effect toward financial distress.

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Section: Diversificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

Nugrahanti¹,

Sutrisno²,

Rahman³

et al. 2019

Proceedings of the Proceedings of the 1st Sampoerna University-Afbe International Conference, SU-AFBE 2018, 6-7 December 2018,

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“…Diversification can create competitive advantage, synergy and risk reduction. But on the other hand cost of the diversification may have a negative impact on performance like coordination problems (Patrisia and Dastgir, 2016). When countries are assessed, England has been carrying out an efficient performance evaluation system; Portugal, Spain, Greece have been trying to improve it and Germany, Switzerland, Belgium have not been applying them at all (Orucu and Koseoglu, 2003).…”

Section: Performance Management As a Modern Management Techniquementioning

confidence: 99%

State Experiences in the Application of Performance Management in the Context of Differences between Administrative Cultures

Çelik¹

2017

EJSS

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As a result of welfare state policies in the 20th century, public institutions grew, diversified, and the field of public administration expanded considerably in terms of public services. This has brought about cumbersome, resource waste, paperwork and similar problems in public administration. But especially after the economic crisis of the 1970s, the debate about public administration's fundamental change and transformation has been intensified. These debates, which also constitute the foundations of the New Public Management, led to a re-questioning of the public administration and a radical transformation. Changing systems have foreseen a state that provides faster and more efficient services and the state has to adopt a structural transformation that limits its activities to provide efficient services instead of operating in every field. In this transformation process, it is being argued that the private sector and the public sector are not different from each other and that the techniques successfully applied in the private sector can also be implemented by the public administration. In this context, the most important tool that comes out to provide effective and efficient service in public administration is performance concept and performance management process. But management tradition and culture have a great influence in the implementation and success of this technique. AngloSaxon state tradition, which attaches importance to organizational understanding and practice, is more inclined to adapt modern management techniques to public administration; Continental Europe state tradition seems to be more distant from these techniques by giving more importance to theory and public institutions.

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“…The prior studies have investigated both antecedent and consequence of the diversification (Kang, 2013). However, research on the consequence of diversification is still centralized on corporate financial performance (Kang, 2013;Patrisia & Dastgir, 2017). On the other hand, financial performance has several limitations.…”

Section: Introductionmentioning

confidence: 99%

Corporate Diversification and Corporate Social Performance in Indonesia

2019

Self Cite

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The relationship between corporate diversification and corporate social performance (CSP) is under-investigated, especially in emerging countries. This study examines the relationship between corporate diversification and CSP in Indonesia setting. Occurrence disclosure analysis has been applied to measure CSP based on 80 indicators of the Global Report Initiative (GRI). This study used multiple regressions with one-year lag dependent variables as the data analysis. The results show that the related diversification is negatively and significantly related to CSP, while, the unrelated diversification reveals a positive relationship with CSP. Besides that, unrelated diversification more correlated to CSP rather than related diversification. Furthermore, international diversification has a positive and significant relationship with CSP. Therefore, this study found that corporate diversification is a significant antecedent of CSP.JEL Classification: L25, M14

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Diversification and corporate social performance in manufacturing companies

Cited by 31 publications

References 79 publications

Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

Does Diversification Strategy Reduce The Level of Financial Distress? (Evidence from Indonesia)

State Experiences in the Application of Performance Management in the Context of Differences between Administrative Cultures

Corporate Diversification and Corporate Social Performance in Indonesia

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