Assess different aspects of the company's growth in different periods of product diversification

Document Type : Research Paper

Authors

1 Professor of Accounting Department of Shahid Chamran University, Ahvaz, Iran.

2  Assistant Professor of Accounting, East Tehran Branch, Islamic Azad University, Tehran, Iran.

3 Ph.D. Student in Accounting, Shahid Cahmran University, Ahvaz, Iran.

Abstract

1) Introduction
The aim of this paper is to investigate different aspects of the company's growth (Includes sales growth, employment and assets) in different periods of of product diversification (Early courses, during and after diversity) in companies listed in TSE. In general, in this study, diversity is considered as an innovation.
2) Research Questions or hypothesis
H1: Employment growth have significant relation with product diversification in before, during and after of diversification.
H2: Revenue growth have significant relation with product diversification in before, during and after of diversification.
H3: Asset growth have significant relation with product diversification in before, during and after of diversification.
3) Methods
This study employs financial data of companies listed on Tehran Stock Exchange during 2003-2016 periods, and the fix effect panel data regression model was used to test hypotheses.
4) Results
According to theoretical considerations, it was expected that the relationship between the growth and diversity of the product in the previous period was a positive and positive variation during and after the diversification. In this regard, Statistical analysis of data shows that Employment growth, Revenue growth and Asset growth are positively associated with product diversification in before and during the diversification process, but this relation is not significant in after of diversification process.

Keywords

References

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History

  • Receive Date: 14 June 2020
  • Revise Date: 21 June 2020
  • Accept Date: 22 June 2020

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