Tobin’s q, RoA, Diversification and Risk

Farhangzadeh, Banafsheh

doi:10.18052/www.scipress.com/ILSHS.50.146

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Tobin’s q, RoA, Diversification and Risk

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Abstract:

This study aims to explain the link between corporate diversification, firm performance and risk. To test the research hypotheses, a sample of 63 companies listed in Tehran Stock Exchange over the period 2008-2012 was taken. We construct two models with Tobin’s q, RoA, Size, Debt, Growth and Standard deviation of stock returns. Analysis of the research models is based on panel(data) analysis. In these models the presence or absence of effects models (fixed or random) is reviewed and finally the best model is estimated. Inference is based on significant level or p-value, thus likely that any value or significance level of the test is less than 0.05 is rejected at the 95 percent confidence level. The results indicate that there is no significant relationship between diversification strategy, firm performance and risk.

Info:

Periodical:

International Letters of Social and Humanistic Sciences (Volume 50)

Pages:

146-154

DOI:

https://doi.org/10.18052/www.scipress.com/ILSHS.50.146

Citation:

B. Farhangzadeh, "Tobin’s q, RoA, Diversification and Risk", International Letters of Social and Humanistic Sciences, Vol. 50, pp. 146-154, 2015

Online since:

March 2015

Authors:

Banafsheh Farhangzadeh

Keywords:

Diversification, Firm Performance, Return on Asset, Risk, Tobin’s q

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Open Access

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Creative Commons Attribution 4.0 International License

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