Abstract
The main purpose of this paper is to introduce what affects the firm to diversify. This paper is based on an empirical analysis of a sample of 453 manufacturing companies in India. Jacquemin-Berry Entropy-Index measure has been used to measure diversification; whereas to determine the factors affecting diversification strategy, Panel Tobit Regression Analysis has been applied. The research findings indicate that firm-specific antecedents influence the decision to diversify. Corporate managers should follow a prudent behaviour while adopting strategic planning for the growth of the company. Managers should have to conduct proper statistical analyses to find out a firm’s optimal level of corporate diversification for maximising the firm performance.
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Additional information
Notes on contributors
Anu Thakur
Dr. Anu Thakur is working as an Assistant Professor in School of Management, Bennett University, Greater Noida, Delhi-NCR, India. She has done her Ph.D. in the field of Strategic Management. Her areas of teaching and research interests are Finance, Accounting and Strategic Management. She has publications in both national and international journals.
Aparna Bhatia
Dr. Aparna Bhatia is working as an Assistant Professor in the Department of Commerce, Guru Nanak Dev University, Amritsar, Punjab, India. She has done her Ph.D. in the field of Strategic Management. Her areas of teaching and research interests are accounting and strategic management. She has more than a dozen publications in both national and international journals.