The Effect of Corporate Diversification on Performance of Quoted Companies in Nigeria
Abstract
This study evaluates the relationship between corporate diversification and firm performance among diversified firms in Nigeria. The study formulated five objectives and hypothesis, and adopted ex-post facto design. The panel data collected from the financial reports of diversified firms in Nigeria between 2013 and 2022 was analyzed using panel regression. The study proxy corporate diversified using product diversification, and proxy firm performance using return on investment. However some preliminary analyses such as descriptive statistics, correlation analyses were carried out. The study finds that corporate diversification has 55.9% effect on firm performance. The study also finds that product diversification; subsidiary diversification income has positive significant effect on performance of diversified firms in Nigeria. While sector diversification has negative significant effect on performance of diversified firms in Nigeria. The study recommends among others that management of diversified firms should increase their product line, income making opportunity and subsidiaries as this will significantly enhance their firm performance.
Keywords
CorporatePerformanceDiversificationFirm
References
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