|
|
|
| Relationship between International Diversification and Firm Performance:
Empirical Evidence from Chinese Listed Corporation |
| SUN Weifeng,HUANG Zuhui |
| 1. Zhejiang Univeristy, Hangzhou, China; 2. Yuncheng University, Yuncheng, Shanxi, China |
|
|
|
|
Abstract Based on a sample of Chinese listed corporation, empirical results show that the relationship between international diversification and firm performance is statistically significantly positive, and the statistical significance of their relationship depends on the corporate size. Analysis on the shape between firm performance and degree of international diversification indicates the relationship between firm performance and the degree of international diversification is linear, and firm performance rises as the degree of international diversification increases, statistically significant for ROA. The interaction effect from both international and industrial diversification strategies on performance is not validated, and this suggests that industrial diversification is not a moderator of the international diversificationperformance relationship. This result depends on the proposition that international diversification is exogenous variable, but endogeneity test show that the proposition can not be rejected.
|
|
Received: 09 February 2012
|
|
|
|
|
|
|
2013, Vol. 10 
