scholarly journals Do Chinese power companies employ investments in foreign power projects as a geographical diversification strategy?

2021 ◽  
pp. 92-126
Author(s):  
Akihisa Mori
Keyword(s):  
Diversification Strategy ◽  
Geographical Diversification

Does diversification reduce financial constraints of telecommunications companies?

2020 ◽  
Vol 2020 (5) ◽  
pp. 120-142
Author(s):  
Viktoriya Cherkasova ◽  
Arina Chernoshchyokova
Keyword(s):  
Comparative Analysis ◽  
Financial Constraints ◽  
External Financing ◽  
Diversification Strategy ◽  
Logit Regression ◽  
Different Types ◽  
Telecommunication Companies ◽  
The Impact ◽  
Geographical Diversification ◽  
Telecommunications Companies

Financial constraints reflect either company’s lack of capability to raise the necessary external financing or excessively high cost of such financing. One way to reduce financial constraints is to diversify company’s activities. The article presents a comparative analysis of the impact of different types of diversification (geographical and product) on telecommunication companies’ financial constraints. The sample consists of 103 companies over the period from 2010 to 2018. The level of financial constraints is measured as ASCL-index which allows for more comprehensive characteristics of companies’ financial capabilities on the basis of four indicators: average cash flow, average financial leverage, age and size of the company. The impact of diversification on financial constraints is analyzed by evaluating several models of ordered logit regression. Regression and statistical analysis shows that both product and geographical diversification reduce the company’s level of financial constraints. Moreover, in developing countries, geographical diversification is a priority strategy of reducing financial constraints level for telecommunication companies. The findings of the study can be used by companies’ management to choose an optimal diversification strategy.

scholarly journals The combined effects of product and geographical diversification on performance: Evidence in manufacturing SMEs

2020 ◽  
Vol 23 (2) ◽  
pp. 91-106
Author(s):  
Diana Benito-Osorio ◽  
Alberto Colino ◽  
Luis Ángel Guerras-Martín ◽  
José Ángel Zúñiga-Vicente
Keyword(s):  
International Diversification ◽  
Jel Classification ◽  
Dynamic Panel Data ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Diversification Strategies ◽  
Statistical Support ◽  
And Performance ◽  
The Individual ◽  
Geographical Diversification

This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises’ (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994–2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted. JEL CLASSIFICATION: F23; L25; M16

International Real Estate Review

2011 ◽  
Vol 14 (2) ◽  
pp. 184-207
Author(s):  
Shan Min Charmaine Cheok ◽  
◽  
Tien Foo Sing ◽  
I-Chun Tsai ◽  
◽  
...  
Keyword(s):  
Capital Expenditure ◽  
Cash Flows ◽  
Least Square ◽  
Diversification Strategy ◽  
Risk Premiums ◽  
Property Type ◽  
Empirical Tests ◽  
Administrative Expenses ◽  
The Impact ◽  
Geographical Diversification

This study tests the impact of diversification strategies on the cash flows, expenses, risks and returns of REITs in Asia. Hirschman-Herfindahl indices (HHI) are computed based on 2281 properties owned by 63 sample Asian REITs for the periods from 2002 to 2007 to measure the levels of diversification by property type and geographical region. In our empirical tests that use weighted least square regressions, we find no significant effects of diversification by property types on cash flows, expenses and risk premiums of Asian REITs. However, significant variations in expenses and risk premiums of the REITs are explained by a geographical diversification strategy. REITs with assets distributed across different countries incur higher total expenses, interest expenses, general and administrative expenses and capital expenditure. Regionally diversified REITs have higher risk premiums. The results remain unchanged after controlling for country factor and simultaneity between the cash flows, expenses, risk and return variables.

Geographical diversification in wheat farming: a copula-based CVaR framework

2015 ◽  
Vol 75 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Ryan Larsen ◽  
David Leatham ◽  
Kunlapath Sukcharoen
Keyword(s):  
Value At Risk ◽  
Conditional Value At Risk ◽  
Multivariate Normal ◽  
Diversification Strategy ◽  
Agricultural Producers ◽  
Content Type ◽  
Multivariate Normal Mean ◽  
Normal Mean ◽  
Finance Theory ◽  
Geographical Diversification

Purpose – Portfolio theory suggests that geographical diversification of production units could potentially help manage the risks associated with farming, yet little research has been done to evaluate the effectiveness of a geographical diversification strategy in agriculture. The paper aims to discuss this issue. Design/methodology/approach – The paper utilizes several tools from modern finance theory, including Conditional Value-at-Risk (CVaR) and copulas, to construct a model for the evaluation of a diversification strategy. The proposed model – the copula-based mean-CVaR model – is then applied to the producer’s acreage allocation problem to examine the potential benefits of risk reduction from a geographical diversification strategy in US wheat farming. Along with the copula-based model, the multivariate-normal mean-CVaR model is also estimated as a benchmark. Findings – The mean-CVaR optimization results suggest that geographical diversification is a viable risk management strategy from a farm’s profit margin perspective. In addition, the copula-based model appears more appropriate than the traditional multivariate-normal model for conservative agricultural producers who are concerned with the extreme losses of farm profitability in that the later model tends to underestimate the minimum level of risk faced by the producers for a given level of profitability. Originality/value – The effectiveness of geographical diversification in US wheat farming is evaluated. As a methodological contribution, the copula approach is used to model the joint distribution of profit margins and CVaR is employed as a measure of downside risk.

Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

2020 ◽  
pp. 81-94
Author(s):  
Alexandra V. Chugunova ◽  
Olga A. Klochko
Keyword(s):  
International Trade ◽  
Mergers And Acquisitions ◽  
Volume Growth ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Cross Border ◽  
Export Volume ◽  
Relationship Of ◽  
Geographical Diversification ◽  
The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

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