Symmetric Modeling of Diversification Strategy and Organizational Structure on Financial Performance: Evidence from China

Cao, Jianwei; Wu, Cisheng; Tetteh, Stephen; Guang, Hui; Miao, Gendi

doi:10.3390/sym13020196

Cited by 5 publications

(3 citation statements)

References 46 publications

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“…According to the Synergy Effects theory, enterprises implementing diversification strategies tend to be more willing to share resources and diffuse capabilities [23], which has an important effect on resource allocation and synergy among the industries they are involved in promotion, which makes the cross-industry convergence of enterprise technology, resources, and talents more rapid. Simultaneously, diversification is the business strategy adopted by firms, and its successful execution necessitates the synergy effect of many management elements [24]. As a new kind of cross-border cooperation among firms, industrial convergence adds value by leveraging the complementary characteristics of many industries.…”

Section: The Mediating Role Of Diversification Strategymentioning

confidence: 99%

Impact of Economic Policy Uncertainty on Industrial Convergence: Evidence from China

Wang

2023

Sustainability

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The uncertainties in current economic policies have increased, and Decisions about industrial convergence by businesses are impacted by uncertain macroeconomic policy. Using a fixed-effects model, the article selects annual data from A-share listed Chinese companies from 2010 to 2021 and empirically analyzes the relationship between economic policy uncertainty (EPU) and industrial convergence, as well as the mediating and moderating effects of diversification strategies and financial distress under this path of action. The findings are as follows: (1) EPU has a significant negative impact on industrial convergence, and this phenomenon is most obvious for non-state enterprises. (2) Enterprise diversification strategy mediate the relationship between industrial convergence and EPU (3) Corporate financial distress has a negative moderating effect on the relationship between EPU and industrial convergence. (4) The nature of firm property rights has a negative moderating effect on the relationship between EPU and industrial convergence. The aforementioned conclusions have implications for policy: the government should always ensure the long-term stability of economic policies and direct and encourage the development of cross-industry convergence of enterprises. Enterprises need to actively empower development with joint efforts to achieve win-win cooperation.

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Section: The Mediating Role Of Diversification Strategymentioning

confidence: 99%

Impact of Economic Policy Uncertainty on Industrial Convergence: Evidence from China

Wang

2023

Sustainability

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“…Foreign assets to total Global assets: Foreign assets to total global assets are one of the properties selected for the measurement of the possible implications of internationalization. Cao et al (2021) posited that foreign assets lagged with the banks' global total assets giving a proportional percentage of foreign branches' performance. According to Brahmana et al (2018), foreign assets to total global assets are closely associated with the internationalization of banking performance, De Massis et al ( 2018) revealed that foreign assets to total global assets had a positive effect on the financial performance and value creation in meeting corporate set goals and objectives.…”

Section: Internationalizationmentioning

confidence: 99%

Internationalization and Financial Stability of Deposit Money Banks in Nigeria

2023

ijafr

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This study aims to examine the effect of internationalization on the financial stability of deposit money banks in Nigeria. The study is crucial, as financial stability is significant in the effective functioning of all other sectors of the Nigerian economy. The data for the study were extracted from the financial statements of the deposit money banks listed on the Nigerian Exchange Group as of 2ist December 2021. The validity and reliability of data were premised on their certification financial statements by statutory auditors. Descriptive and panel data analysis were employed for the data analysis. The findings demonstrate that foreign assets to total assets and foreign taxes to total taxes have insignificant effects, while foreign profits and total profits and cross-border banking activities have significant effects. However, the joint statistics further reveal that internationalization has a positive effect on the financial stability of deposit money banks in Nigeria. The result suggests that managers at the foreign operations of the banks should review operational strategies to ensure adequate support and improve foreign banking operations performance towards contributing to the financial stability of the banks.

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“…Different studies have looked at strategic decisions from different perspectives, which can be mainly classified into three categories as follow. The first is the content of a strategic decision covering topics such as diversification strategy, concentration strategy, cost leadership and product differentiation strategies (O'Brien et al 2014, Banker et al 2014, Cao et al 2021). The second is the strategic decision-making process, which explores how strategic decisions are made and what factors affect them (Menda and Dilts 1997, De Wit and Meyer 2010, Merendino et al 2018, Chin et al 2021).…”

Section: Strategic Management Strategy and Diversification As The Con...mentioning

confidence: 99%

The impacts of diversification strategy on the financial performance of insurers

Shojaei¹

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The thesis examines the impacts of diversification strategy on the financial performance of firms in the insurance industry. It investigates the impacts of different dimensions of the diversification strategy, including product, geographic, staff, and technological diversification, on insurers' financial performance while considering some essential control variables such as type, size, age, and ownership structure of the companies. The research measures financial performance with the return on equity (ROE) and the return on assets (ROA). The thesis employs the mixed methods research methodology using qualitative and quantitative data collected from Iranian insurance companies, while the data is analysed quantitatively. Two separate studies are conducted to evaluate the impacts of different dimensions of diversification strategy on firms' financial performance. Specifically, the first study focuses on the impact of technological diversification strategy on a firm's financial performance. This study uses the primary data associated with technological diversification through a questionnaire survey with managers from 31 Iranian insurance companies, as the data for technological diversification is not available as secondary data. The data associated with firms' financial performance is collected from reports annually published by the Central Insurance of Iran. Employing the Structural Equation Modelling method enabled by Smart PLS 3 software to analyse the primary data, the study reports mixed effects of technological diversification on the financial performance of Iranian insurers. The second study focuses on investigating the impacts of product, geographic and staff diversification strategies on the financial performance of Iranian insurers. This study employs secondary data collected from the annual reports of the Central Insurance of Iran (from 2011 to 2020). Using econometric techniques for panel data (e.g., fixed effects) enabled by EViews 10 software, the study finds some 3 significant impacts of different dimensions of diversification strategy on the financial performance of Iranian insurers. This thesis is novel in several ways. First, it uses new measurement methods for different dimensions of the diversification strategy, specifically for product diversification and technological diversification. Second, this is the first study in diversification-firms' financial performance literature that combines all four dimensions in a single study. Third, this research benefits from different theoretical perspectives to synthesise the literature and interpret the findings. Therefore, the thesis is not bound or biased to any single theoretical lens. Finally, it provides robust and comprehensive findings for both researchers and practitioners in the insurance industry.

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Symmetric Modeling of Diversification Strategy and Organizational Structure on Financial Performance: Evidence from China

Cited by 5 publications

References 46 publications

Impact of Economic Policy Uncertainty on Industrial Convergence: Evidence from China

Impact of Economic Policy Uncertainty on Industrial Convergence: Evidence from China

Internationalization and Financial Stability of Deposit Money Banks in Nigeria

The impacts of diversification strategy on the financial performance of insurers

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