Firm diversification and firm performance investigating the moderating role of corporate governance in India

Abstract

The study set out to investigate the impact of diversification strategy on listed Indian firms performance part of the National Stock Exchange (NSE) 500 index. The moderating effect of corporate governance attributes on the relationship of diversification strategy and firm performance was also studied. The sample period of the study was 2003-04 to 2017-18. The results of the study pointed towards a significant but negative relationship between firm diversification and firm performance. Corporate governance attributes showed a positive impact on firm performance. The attributes also moderate the relationship between firm diversification and firm performance. The results provide insights for all stakeholders namely the decision makers, the policy makers, academia and industry. newline