An Empirical Analysis of Efficiency of Corporate Diversification in Emerging Markets: Evidence from BRIC Countries

  • Irina Ivashkovskaya HSE University, 20, Myasnitskaya ul., Moscow, 101000, Russia
  • Svetlana Shamraeva HSE University, 20, Myasnitskaya ul., Moscow, 101000, Russia
  • Elena Grigoriadi HSE University, 20, Myasnitskaya ul., Moscow, 101000, Russia
Keywords: corporate diversification, company value, growing capital markets

Abstract

Researchers have long tried to define the impact of corporate diversification on firm value. Academic papers mainly concentrate on the effects of corporate diversification in mature markets while its consequences in emerging capital markets are less explored. The article presents the results of empirical analysis of diversification strategies of the sample of 6 Brazilian, 9 Russian, 63 Indian and 50 Chinese companies. The research has been done in Corporate Finance Center, State University – Higher School of Economics. Using event study method we demonstrate that corporate diversification had a positive impact on a firm’s value within the sample of the firms from BRIC counties.

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Published
2009-01-20
How to Cite
IvashkovskayaI., ShamraevaS., & GrigoriadiE. (2009). An Empirical Analysis of Efficiency of Corporate Diversification in Emerging Markets: Evidence from BRIC Countries. HSE Economic Journal, 13(3), 360-382. Retrieved from https://ej.hse.ru/article/view/29486
Issue
Vol 13 No 3 (2009): HSE Economic Journal
Section
Untitled section