Corporate diversification and efficiency of manufacturing firms listed in Bursa Malaysia

Document Type : Research Paper


1 Research, Development and Islamic Studies Center, Securities and Exchange Organization, Tehran, Iran

2 Faculty of Management, Universiti Teknologi Malaysia, Skudai, Johor Bahro, Malaysia

3 Faculty of Science, Universiti Teknologi Malaysia, Skudai, Johor Bahro, Malaysia


There is little consensus on the corporate diversification-efficiency relationship in the diversification literature. The study aims to contribute to the literature by looking jointly at two dimensions of corporate diversification as product diversification and international diversification and the relationship between them. The results show negative relationship between product diversification and efficiency, international diversification and efficiency and corporate diversification and efficiency in manufacturing firms listed in Bursa Malaysia. This study also has described main variables which have an impact on the diversification-efficiency relationship and has guided managers on how to pursue an optimal diversification strategy.


Main Subjects

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