Corporate diversification and efficiency: evidence from Taiwanese top 100 manufacturing firms

CCUR > College of Business > Department of International Trade 7 Graduate Institute of International Trade > periodical articles > Item 987654321/41904

Please use this identifier to cite or link to this item: https://irlib.pccu.edu.tw/handle/987654321/41904

Title:	Corporate diversification and efficiency: evidence from Taiwanese top 100 manufacturing firms
Authors:	Wang, WK (Wang, Wei-Kang) Ting, IWK (Ting, Irene Wei Kiong) Kuo, KC (Kuo, Kuo-Cheng) Kweh, QL (Kweh, Qian Long) Lin, YH (Lin, Yan-Heng)
Contributors:	國貿系
Keywords:	DATA ENVELOPMENT ANALYSIS SLACKS-BASED MEASURE DYNAMIC DEA MODELS INTERNATIONAL DIVERSIFICATION GLOBAL DIVERSIFICATION ECONOMIC-PERFORMANCE STRATEGIES PROFITABILITY GROWTH COSTS
Date:	2018-04
Issue Date:	2019-01-21 13:22:07 (UTC+8)
Abstract:	For at least the last two decades, diversification has been an important issue in the strategic management research. This paper explores how diversification affects the corporate performance of the top 100 manufacturing companies in Taiwan, which were selected based on a ranking survey of Taiwanese manufacturing firms conducted by Common Wealth Magazine in 2014. This paper adopts a dynamic data envelopment analysis model to estimate efficiency in the first stage, and adopts OLS regression analysis in the second stage from 2009 to 2013. Two proxies, namely the Entropy approach and the Herfindahl-Hirschman Index, are used to proxy for diversification. The results indicate that diversification has positive impacts on dynamic efficiency, after controlling firm-specific factors. Concisely, this study empirically proves that diversification is an important corporate strategy for improving corporate performance over long-term periods. Overall, "putting eggs in various baskets" enable companies to not only survive, but also sustain competitive advantage in today's challenging business world.
Appears in Collections:	[Department of International Trade 7 Graduate Institute of International Trade ] periodical articles

Files in This Item:

File	Description	Size	Format
index.html		0Kb	HTML	276	View/Open

View Licence

Loading...