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Business Diversification Risk : The Studies

These studies on Business Diversification Risk are still relevant today.

Diversification Strategy and Systematic Risks: An exploration

A study about diversification strategy and systematic risks used financial theory to explore the relationship between diversification strategy and systematic risk. A discussion is presented about the measures selected for market power, capital intensity and financial leverage. Details related to sources of data were also discussed.

Business Diversification Risk : The Studies

´ Diversifying Your Portfolio for the Future´

An evaluation about individual investors revealed that they tend to allocate their resources more efficiently when it comes to their investments. In addition, diversification can help reduce the overall risk in an individual's portfolio. Diversification of an individual's portfolio is best done by picking mutual funds that offer a wide range of assets and risk. Not only will this add Exposure to different markets but also provide liquidity for the investment. Individual investors' actions can impact the overall performance of a portfolio, and because of this, it is important for investors to research what different types of vehicles are available and how those vehicles perform. So too, should investors research the sharp pullbacks or surges in prices typically associated with market corrections or booms/buds? even if they experience none)?.

Comparing and contrasting Investment Portfolios: What Works for You

An inquiry about the risks and diversification of investment portfolios showed that different strategies are best for different investors. Those who are concerned with preserving their capital should employ a range of asset-types and characterize their positions in each consistently. Unknown to the decision maker, the various positions of an individual can have significant bearing on one's overall risks, which could then impact several other investments.

Diversification: A Superior Investment Strategy

A research about the performance of diversification in a capital market position identifies that security-market-based measures are superior to Rumelt's classification scheme. specifically, diversification provides a higher potential for increased return.

The Role of Diversification Risk in Financial Bubbles

An article about the role of diversification risk in financial bubbles has been carried out and it is found that the risk can play a significant role in whether a bubble forms or not. The study discusses howiffin the factors that increase or decrease the chances of a bubble forming, and finds that there is no one unconditionally correct answer to this question. In fact, different strategies can work in different bubbles, so it is important to select an appropriate mixture of risks when investing in stocks.

Business Diversification Can Help Shield a Company From Bankruptcy

An article about business growth and diversification found that it can play a mediating role in increasing corporate risk andERA. This article seeks to identify this trend by discussing bankruptcy risk and business diversification. It finds that business diversity can help shield a company from bankruptcy while also providing relief in regards to associated risks.


A study about the effects of managerial ownership on international business diversification found that managerial ownership has a considerable effect on the ability of businesses to diversify their operations. The study also found that what degree of managerial control businesses have over their…… The effects of managerial ownership on international and tradeJanuary 10, 2017 · The article discusses the effects of managerial ownership on international trade andination. By analyzing the literature and discussing analytical methods, it is found that there are a number ofeffects of managerial ownership which negatively impact trade. ….

Diversification and Corporate Performance

A study about the effect of diversification on corporate performance revealed that it can improve the company’s value both through shareholders’ financial return andthrough cost cutting measures. This wasimplicated by The Economist Intelligence Unit’s (EIU) study which placed diversification inighth place as one of the world’s ten most important business strategies for firms. Diversification has been shown to be a popular policy approach across Corporate America, where it has Come to Play in American Corporate lives. A growing number of organizations are turningto global businesses, realizing the benefits that multinational Alex Capaldi sat Follow: diversification – how its decreasing risk a mine disaster.

Divergent Strategies and Business Performance: A Review

An analysis about the effects of diversification strategy on business performance found that this strategy can lead to increased profitability and a strong capital structure. This was Maintained through the use of diversification goals and strategies, which led to a growth process and better reflexivity.

Business Expansion and Efficiency

An inquiry about business diversification and the effect on efficiency revealed that some companies may be more efficient by expanding their product lines and/or business territories, while others may have better performance by staying within their traditional segments.

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