The influence of the diversification degree and directivity on business risk Online publication date: Fri, 25-Nov-2016
by Ryota Ishiai; Ling Feng; Masahiro Irie
Asian J. of Management Science and Applications (AJMSA), Vol. 2, No. 3, 2016
Abstract: One of main purposes of diversification strategy is to decrease the business risk by portfolio construction. In this case, since the unrelated diversification strategy differs in the performance variation pattern between business segments greatly, we think that business risk will be decreasing. We find that when RHI (an index of the degree of diversification) is less than 0.3, Dir (an index of the directivity of diversification we proposed) and business risk is in positive correlation. That is, when the degree of diversification is low, unrelated diversification will be effective in decreasing a business risk.
Online publication date: Fri, 25-Nov-2016
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Asian J. of Management Science and Applications (AJMSA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com