Industrial Diversification and Performance in an Emerging Market

  • Emel Yücel Cukurova University, Faculty of Kozan Business Administration, Adana, Turkey
  • Yıldırım Beyazıt Önal West University of Timisoara, Faculty of Economics and Business Administration, Finance Department, Romania


In this study, we investigated the relationship between industrial diversification and firm performance using a market-based performance measure and an accounting measure. We used the data of the firms listed on Borsa Istanbul during the period between 2006 and 2012. The results of the panel data indicate that there is a significant positive relationship between diversification and performance. We found that diversified firms outperformed the single firms. As is compatible with a resource-based approach, it was found that diversified firms tended to use their resources more efficiently compared to single firms.

Key words: Industrial diversification, Internal capital market, Agency cost, Return on assets, Tobin’s Q, Turkey.
JEL: G30, G34.

How to Cite
Yücel E., & Önal Y. (2016). Industrial Diversification and Performance in an Emerging Market. Panoeconomicus, 63(4), 441-454. doi:10.2298/PAN1604441Y
Original scientific paper