Effects of corporate diversification on firm performance
Evidence from the Serbian insurance industry
Bibliographic Data
| ID | 15068302 |
|---|---|
| Authors | Ranka Krivokapic (University of Montenegro, corresponding author), Vladimir Njegomir (0000-0003-0148-6906, Faculty of Law and Business studies, Department of Economics, dr Lazar Vrkatic Union University, Novi Sad Serbia), Dragan Stojic (0000-0003-4067-570X, University of Novi Sad) |
| Year | 2017 |
| Volume | 30 |
| Issue | 1 |
| Pages | 1224-1236 |
| Publication date | 2017-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2017.1340175 |
| OpenAlex | W2723573387 |
| Language | EN |
| References cited | 41 |
The aim of this paper is to provide empirical evidence on the relation between line-of-business diversification and performance for the insurance companies that operated in the republic of Serbia in the period 2004–2014. The research results show that the relation between risk-adjusted returns measured both by return on assets and return on equity and line-of-business diversification and performance measured by entropy is significant and positive, which means that diversified insurers outperform undiversified insurers. These results could be useful in decision making for insurance companies as they suggest the need for diversification (specialisation), growth in size, capitalization and affiliation (grouping)
Actuarial science · Business · Business model · Empirical evidence · Line of business · Profitability index · Return on assets · Insurance and Financial Risk Management · Insurance, Mortality, Demography, Risk Management · Risk Management in Financial Firms · Finance · Marketing
| Citation velocity | historical |
|---|---|
| Highly cited | No |