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Effects Of Corporate Diversification On Its Performance: The Case Of Croatian Non-Life Insurance Industry

Author

Listed:
  • Ivan Pavic

    (University of Split, Croatia)

  • Maja Pervan

    (University of Split, Croatia)

Abstract

Although a number of authors have tried to investigate different aspects of insurance industry, there is still little research done and evidence on the performance effect of diversification in either life or non-life insurance industry. This is especially true for the Croatian insurance industry. Therefore, the authors of this article find it valuable to investigate the relationship between product diversification and performance. In testing this relationship we employ different methods of financial performance and diversification assessment.

Suggested Citation

  • Ivan Pavic & Maja Pervan, 2010. "Effects Of Corporate Diversification On Its Performance: The Case Of Croatian Non-Life Insurance Industry," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 19(1), pages 49-66, june.
    • Handle: RePEc:avo:emipdu:v:19:y:2010:i:1:p:49-66
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    File URL: https://hrcak.srce.hr/clanak/83217
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    References listed on IDEAS

    as
    1. J.A. Bikker & J. Gorter, 2008. "Performance of the Dutch non-life insurance industry: competition, efficiency and focus," Working Papers 08-01, Utrecht School of Economics.
    2. J.A. Bikker & J. Gorter, 2008. "Performance of the Dutch non-life insurance industry: competition, efficiency and focus," Working Papers 08-01, Utrecht School of Economics.
    3. Stan Xiao Li & Royston Greenwood, 2004. "The effect of within‐industry diversification on firm performance: synergy creation, multi‐market contact and market structuration," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1131-1153, December.
    4. Berger, Allen N. & Cummins, J. David & Weiss, Mary A. & Zi, Hongmin, 2000. "Conglomeration versus Strategic Focus: Evidence from the Insurance Industry," Journal of Financial Intermediation, Elsevier, vol. 9(4), pages 323-362, October.
    5. Abhirup Chakrabarti & Kulwant Singh & Ishtiaq Mahmood, 2007. "Diversification and performance: evidence from East Asian firms," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 101-120, February.
    6. Andre P. Liebenberg & David W. Sommer, 2008. "Effects of Corporate Diversification: Evidence From the Property–Liability Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(4), pages 893-919, December.
    7. Cummins, J. David & Danzon, Patricia M., 1997. "Price, Financial Quality, and Capital Flows in Insurance Markets," Journal of Financial Intermediation, Elsevier, vol. 6(1), pages 3-38, January.
    8. Cynthia A. Montgomery, 1994. "Corporate Diversificaton," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 163-178, Summer.
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    Cited by:

    1. Patty Duijm & Ilke Van Beveren, 2022. "Product diversification as a performance boosting strategy? Drivers and impact of diversification strategies in the property‐liability insurance industry," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(3), pages 303-328, September.
    2. Subrato Banerjee & Basri Savitha, 2021. "Correction to: Competition reduces profitability: the case of the Indian life microinsurance industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 508-508, July.
    3. Jiaxuan Wang & Samira Abdullayeva & Duc Sinh Hoang, 2024. "Diversification and company sales efficiency: Synergy influence on business valuation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 940-951, March.

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    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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