The Impact of Corporate Diversification on Efficiency of Firms Listed in Tehran Stock Exchange
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Impact of Corporate Diversification on Efficiency of Firms Listed in Tehran Stock Exchange

Authors
Abstract
There is a little consensus on the corporate diversification and efficiency relationship in the literature review. The study aims to contribute to the literature by looking jointly at product diversification, international diversification and corporate diversification with efficiency. The research methodology is done by data envelopment analysis and panel data during six years. The results show no relationship between product diversification and international diversification with efficiency in firms listed in Tehran Stock Exchange. However, corporate diversification has been a positive and significant impact on efficiency. The findings show that managers should be applied product diversification and international diversification together for better result.
Keywords