چکیده:
In the past few years, diversification has turned into a highly
controversial issue amongst numerous managers in almost each and every
business. It is contended by many that diversification is vitally important
and highly effective especially when it comes to evaluating the financial
performance. There are several studies about the relationship between
diversification and financial performance. However, there is no agreement
that diversified firms are more efficient than focus firms. In this paper, the
manufacturing firms listed in Bursa Malaysia are ranked based on their
efficiency scores calculating by Data Envelopment Analysis (DEA)
models and the effect of diversification on the efficiency scores of these
corporations have been investigated. Moreover, by slack analysis, the
proposed improvement strategies for inefficient firms have been cited.
Ultimately, the Malmquist index of productivity (MIP) has been utilized
to further comparison and analysis.
خلاصه ماشینی:
Corporate diversification’s effects on Efficiency and productivity: case study of Manufacturing firms listed in Bursa Malaysia Meysam Doaei• Babooshka Shavazipour Abstract In the past few years, diversification has turned into a highly controversial issue amongst numerous managers in almost each and every business.
In this paper, the manufacturing firms listed in Bursa Malaysia are ranked based on their efficiency scores calculating by Data Envelopment Analysis (DEA) models and the effect of diversification on the efficiency scores of these corporations have been investigated.
The scholars defined diversification as firm enters new sector (Iacobucci and Rosa, 2005), or new industry (Jacquemin and Berry, 1979), or new Corresponding author- Department of Business Administration, Faculty of Management, Universiti Teknologi Malaysia, Skudai, Johor Bahro, Malaysia- E-mail: dmeysam2@live.
(1982) and the measurement of efficiency from Farrell (1957) to construct a Malmquist productivity index directly from input and output data using DEA.
This DEA-based Malmquist productivity index has proven itself to be a good tool for measuring the productivity change of DMUs. We are using the Malmquist productivity index and its decomposition to analysis of the productivity of the manufacturing firms listed in Bursa Malaysia and finding the resources of their productivity.
Table 3: Summary of descriptive statistics (View the image of this page) 3 depicts the annual average of product diversification, international diversification and efficiency scores on Malaysian manufacturing firms from 2006 to 2010.
The degree of corporate diversification (product and international diversification) in Malaysian manufacturing listed firms in Bursa Malaysia for five years is documented.