The Impact of Corporate Diversification and Financial Structure on Firm Performance: Evidence from South Asian Countries

The Impact of Corporate Diversification and Financial Structure on Firm Performance: Evidence from South Asian Countries

We examined the impact of corporate diversification and financial structure on the firms’ financial performance. We collected data from 520 manufacturing firms from Pakistan, India, Sri Lanka, and Bangladesh. We used panel data of 14 years from 2004–2017 to analyze the results. W...

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Bibliographic Details
Main Authors: Rashid Mehmood, Ahmed Imran Hunjra, Muhammad Irfan Chani
Format: Article
Language:English
Published: MDPI AG 2019-03-01
Series:Journal of Risk and Financial Management
Subjects:
corporate diversification
financial structure
corporate governance
audit quality
firm financial performance
Online Access:https://www.mdpi.com/1911-8074/12/1/49
Description
Summary:We examined the impact of corporate diversification and financial structure on the firms’ financial performance. We collected data from 520 manufacturing firms from Pakistan, India, Sri Lanka, and Bangladesh. We used panel data of 14 years from 2004–2017 to analyze the results. We applied a two-step dynamic panel approach to analyze the hypotheses. We found that product diversification and geographic diversification significantly affected the firms’ financial performance. We further found that dividend policy and capital structure had a significant impact on the firm’s financial performance.
ISSN:1911-8074

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