Faculty Scholarship 1994 - Present

A Comparative Study of US and Korean Firms: Changes in Diversification and Performance

The present study adopts a more dynamic perspective of the diversification/ performance relationship. Instead of measuring diversification and performance for the same year, a five-year period was used to allow for the effects of diversification to be incorporated into financial statements. It would be interesting to understand whether changes in a firm's diversification profile will have an impact on firm performance, as well as the direction of this relationship. These issues are also important when investigating firms across international boundaries. Therefore, the present study investigates the issues of dynamic changes in diversification and their corresponding effect on changes in firm performance.