Faculty Scholarship 1994 - Present

Product Diversification, Multinational Diversity & Corp Perf: Emp Study of U.S. and Jap Multinationals

This study examines the effort of product diversification and multinational diversity on corporate performance (accounting-based and market-based performance) in U.S. and Japanese multinationals. The findings of this study suggest that increased product diversification appears to have a detrimental impact on corporate performance for U.S. firms, but has no significant influence irrespective of different performance measures for Japanese firms. Multinational diversity, however, has a significant and positive impact on corporate performance for Japanese multinational firms, but has a significant impact only on market-based performance measures for U.S. firms. The result suggests that diversification strategy is likely to be differently associated with various indices of performance measures across countries.