The Effect of Diversification on Performance Revisited: How the Dominance of Diversifiers Versus Specialists Drives the Diversification‐Performance Relationship

Becerra, Manuel; Santaló, Juan

doi:10.2753/jmr1536-5433040102

Cited by 6 publications

(6 citation statements)

References 26 publications

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“…We find that the number of segments is positively and significantly associated with share price indicating that diversification in banks does send a positive signal to the market leading to higher stock prices through higher ROA/financial performance in banking sector. These findings are supported by Becerra and Santaló (2006).…”

Section: Segment Reporting In a Developing Economysupporting

confidence: 69%

“…This indicates that diversification in banks does send a positive signal to the market leading to higher stock prices through higher ROA/financial performance in banking sector. These findings are supported by Becerra and Santaló (2006) concluding their segment-level analysis that diversified firms had better financial performance than specialised firms across all types of industries because their large size (2007)(2008)(2009)(2010). Model 1 provides the results of the consolidated Ohlson (1995) model.…”

Section: Resultsmentioning

confidence: 66%

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Segment reporting in a developing economy: the Indian banking sector

Birt

Joshi

Kend

2017

ARA

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Purpose The purpose of this paper is to investigate the value relevance of segment information for both public and private sector banks in India. In doing so, this paper examines a rapidly developing economy and perhaps its most critical sector during this period of strong economic growth. Design/methodology/approach In this study uses the simplified Ohlson model, for a sample of 136 private sector and public sector banks for the period 2007-2010 in India. Findings The paper finds that public sector banks have higher share prices, higher earnings and more equity compared with private sector banks. Segment earnings data is highly value relevant for both sectors; however, segment equity data is only marginally value relevant for Indian banks. The number of segments is also value relevant and associated with higher share prices. Originality/value The results of this study contribute additional evidence to the literature on segment reporting by studying the effect of adoption of segment reporting in an emerging market. Findings from the paper are particularly relevant as India is currently in the process of changing its segment reporting requirements and moving to an IFRS-based segment standard.

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Section: Segment Reporting In a Developing Economysupporting

confidence: 69%

Section: Resultsmentioning

confidence: 66%

Segment reporting in a developing economy: the Indian banking sector

Birt

Joshi

Kend

2017

ARA

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“…Many previous studies address the impact of diversification on different corporate activity aspects: reinvestment strategies (Mackey & Barney, 2013), capital costs and structure (Hann et al, 2013), the effects of banking activity diversification on stock markets (Sawada, 2013), company's value (Kuppuswamy et al, 2014;Hyland, 2003;Jara-Bertin et al, 2015;Nazarova, 2015), the profitability of business operations (Zahavi & Lavie, 2013;Becerra & Santaló, 2006;Santarelli & Tran, 2016;Knapková et al, 2019;Bilan et al 2019), and the need of technologies for the implementation of the diversification process (Li et al, 2013;Wang et al, 2014). Many studies focus on the impact of corporate ownership on the processes of diversification (Chung, 2013;Hernández-Trasobares & Galve-Górriz, 2016;Schmid et al, 2015;Sanchez-Bueno & Usero, 2014).…”

Section: Preconditions and Conditions For Decisionmaking On Corporatementioning

confidence: 99%

Managerial decisions on the nature and scale of corporate activity diversification in the construction sector

Ginevičius

2020

Engineering Management in Production and Services

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Corporate activity diversification is a promising but at the same time risky condition of a company’s adaptation to the business environment. Effectiveness of diversification processes in enterprises may be achieved by research in the following areas: development of methods of internal and external business environment analysis as a basis for diversification decisions; understanding the dependence of the scope and nature of corporate activity diversification on the market situation; providing science-based advice for the management of diversified companies, especially large ones; improvement in the methods of diversification measuring so that a complex analysis of the diversification process would become implementable. Based on the study of the Lithuanian construction sector, this paper seeks to provide new insights into the following aspects of corporate activity diversification: preconditions and conditions for deciding on corporate activity diversification; the problem of the scale and nature of diversification; organisational management conditions for the success of diversification projects. Furthermore, an in-depth discussion of the problematic of measuring the achieved level of diversification is offered.

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“…Diversifikacija yra sudėtingas kompleksinis procesas, todėl jis nagrinėjamas įvairiais aspektais (Kenny 2012;Mehdi, Seboui 2011;Pakneiat et al 2010;Powers 2010;Becerra, Santalo 2006;Rijamampiana et al 2003;Chung-Ming Lau 1993). Dėl šios priežasties jis gana sunkiai valdomas ir dažnai būna nesėkmingas.…”

Section: įVadasunclassified

Įmonių susijusios diversifikacijos matavimas

Ginevičius

2012

Business: Theory and Practice

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santrauka. Norint atlikti kompleksinę įmonių veiklos diversifikacijos analizę, reikia išmatuoti tiek kiekybinę, tiek kokybinę jos puses arba, kitaip tariant, išmatuoti nesusijusią ir susijusią diversifikaciją. Kiekybiniam nesusijusios diversifikacijos matavimui pasiūlyta gana daug būdų, kuriais galima gana objektyviai ir tiksliai išmatuoti pasiektą lygį. Taip yra todėl, kad šis matavimas remiasi objektyviais ir aiškiai nustatomais dydžiais -veiklos sričių skaičiumi bei produkcijos apimčių variacija tarp jų. Kitaip yra su susijusios diversifikacijos matavimu. Čia kyla pagrindinis sunkumas -kaip nustatyti naujų produktų ir rinkų sąsajų su esamais stiprumą. Esami matavimo būdai yra per daug subjektyvūs ir netikslūs, nes remiasi vien tik diskretiniu -kategoriniu vertinimu. Siūlomo kiekybinio susijusios diversifikacijos mato esmė -kiekvieno įmonės gamybinės programos produkto ir rinkos kombinacijos artumo esamoms produkto ir rinkos kombinacijoms nustatymas ir sujungimas į vieną apibendrinamąjį rodiklį.reikšminiai žodžiai: įmonių veiklos diversifikacija, susijusios diversifikacijos matavimas. measurinG the related diversification of enterprises romualdas GinevičiusVilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania E-mail: romualdas.ginevicius@vgtu.lt Received 02 January 2012; accepted 29 February 2012 abstract. Measuring of the related diversification of enterprises requires the determining of its quantitative and qualitative aspects, reflecting the related and unrelated diversification. A large number of methods for quantitative measuring of unrelated diversification, allowing us to determine its level rather accurately and objectively have been offered. This can be achieved because this measurement is based on the objectively determined quantities, including the number of the areas of activities and the variation of the production volumes among them. The situation is different with the related diversification measurement. The main problem in this area is associated with the method of determining the strength of the relationship between the new products and markets and the existing ones. The commonly used methods of measurement are too subjective and inaccurate because they are based only on the discrete-category evaluation. The concept of the suggested quantitative measure of the related diversification is based on determination of the comparability of production programme's product-market combinations with the existing product-market combinations and their integration into one criterion.keywords: diversification of enterprise activities, the related diversification measurement.jel classification: M11.

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The Effect of Diversification on Performance Revisited: How the Dominance of Diversifiers Versus Specialists Drives the Diversification‐Performance Relationship

Cited by 6 publications

References 26 publications

Segment reporting in a developing economy: the Indian banking sector

Segment reporting in a developing economy: the Indian banking sector

Managerial decisions on the nature and scale of corporate activity diversification in the construction sector

Įmonių susijusios diversifikacijos matavimas

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