Interactive Effect of Diversification Strategy on Capital Structure and Corporate Performance: An Analytical Evaluation

Rishi Manrai
Rishi Manrai * §
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§ Thapar University, Patiala, Punjab, India

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Interactive Effect of Diversification Strategy on Capital Structure and Corporate Performance: An Analytical Evaluation

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Abstract

Whether diversification benefits a corporation and its shareholders have been the subject of relevant discussion and research wherein economist and policy managers are working at different fronts towards gaining sustainable advantage and development. Present paper investigates possible measures to understand the effect of product diversification strategy on capital structure (CS) and corporate performance with respect to Indian context. The study involved database collected from non-financial companies listed in NSE and BSE for determining the relationship between variables-corporate growth, size, asset tangibility and profitability. However, research design using different models have been used to analyse the possible effects and relationships in between and among the dependent and independent variable of the study. In conclusion, study variables are associated and different relationships have been captured, analysed and interpreted using statistical tools (E-Views) and techniques. The results are representing and focussing the importance in line of the context of the study.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Rishi Manrai. 2014. "Interactive Effect of Diversification Strategy on Capital Structure and Corporate Performance: An Analytical Evaluation". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 14 (GJMBR Volume 14 Issue C4).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
corporate performancecorrelation analysisdiversification strategyRegression Analysissustainable corporate value creationsystematic risk
Classification
GJMBR-C Classification JEL Code: F65
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2014
  • Published January 15, 2014
Version of record

v1.2

Issue date
September 4, 2014

Language
English
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Interactive Effect of Diversification Strategy on Capital Structure and Corporate Performance: An Analytical Evaluation

Rishi Manrai
Rishi Manrai Thapar University, Patiala, Punjab, India
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2014
  • Published January 15, 2014