Industrial Diversification and Performance in an Emerging Market


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YÜCEL E., Onal Y. B.

PANOECONOMICUS, vol.63, no.4, pp.441-454, 2016 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 63 Issue: 4
  • Publication Date: 2016
  • Doi Number: 10.2298/pan1604441y
  • Journal Name: PANOECONOMICUS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.441-454
  • Çukurova University Affiliated: Yes

Abstract

In this study, we investigated the relationship between industrial diversification and firm performance using a market-based performance measure and an accounting measure. We used the data of the firms listed on Borsa Istanbul during the period between 2006 and 2012. The results of the panel data indicate that there is a significant positive relationship between diversification and performance. We found that diversified firms outperformed the single firms. As is compatible with a resource-based approach, it was found that diversified firms tended to use their resources more efficiently compared to single firms.