Corporate diversification and firms financial performance: an empirical evidence from Indian IT sector

Title

Corporate diversification and firms financial performance: an empirical evidence from Indian IT sector

Creator

Rajesh R.

Description

The aim of this research paper is to provide empirical evidence on the effect of geographic and segment diversification on the financial performance of the Indian IT sector. The study was done on 12 listed IT firms representing 93% market share on BSE/NSE. Standard econometric regression analysis on panel data was carried out to find the stated relationship. The results of the regression analysis revealed that international/geographic diversification impacted strongly on IT firms profitability whereas product/segment diversification had no significant impact on the firms profitability. This study also proves the existence of demand for Indian IT sector in other countries. These results could be useful in decision making for top managers of IT companies as they advocate the need for diversification (specialisation) and growth in size and also provide encouragement to small-scale Indian IT companies to undertake international diversification activities with confidence. Copyright 2023 Inderscience Enterprises Ltd.

Source

International Journal of Business and Globalisation, Vol-34, No. 1, pp. 1-16.

Date

2023-01-01

Publisher

Inderscience Publishers

Subject

corporate restructuring; entropy index; financial performance; geographic diversification; product diversification

Coverage

Rajesh R., School of Business and Management, CHRIST (Deemed to be University), Bangalore, India

Rights

Restricted Access

Relation

ISSN: 17533627

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1504/ijbg.2023.131267

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