IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v57y2021i1p85-107.html
   My bibliography  Save this article

A Study on the Relationship Between Diversification and Firm Performance Using the GSEM Method

Author

Listed:
  • Huu Thanh Vu
  • Nguyen Minh Ha

Abstract

This study adds another perspective on corporate diversification and asset investment diversification, including related and unrelated asset investment diversification, and examines the relationship between this diversification, business diversification, and performance. Because business diversification includes related business and unrelated business diversification, we developed a hypothesis that related business acts as a mediating factor between related asset investment diversification and performance. Similarly, unrelated business plays a mediating role in the relationship between asset diversification and performance. We applied a general linear structural model (GSEM) to panel data on 470 firms listed on the Vietnamese stock exchange from 2008 to 2015. The empirical evidence demonstrates that related assets increase their performance through the mediating effects of related business. By contrast, unrelated assets show an insignificant impact on performance, and unrelated business does not play a mediating role between asset diversification and performance.

Suggested Citation

  • Huu Thanh Vu & Nguyen Minh Ha, 2021. "A Study on the Relationship Between Diversification and Firm Performance Using the GSEM Method," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 85-107, January.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:1:p:85-107
    DOI: 10.1080/1540496X.2019.1582413
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2019.1582413
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2019.1582413?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaoquan Wang & Weifeng Wang & Chaoying Yin, 2023. "Exploring the Relationships between Multilevel Built Environments and Commute Durations in Dual-Earner Households: Does Gender Matter?," IJERPH, MDPI, vol. 20(6), pages 1-17, March.
    2. Lim, Chulmin & Rowsell, Joe & Kim, Seongcheol, 2023. "Exploring the killer domains to create new value: A Comparative case study of Canadian and Korean telcos," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277998, International Telecommunications Society (ITS).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:57:y:2021:i:1:p:85-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.