International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 8, Issue 10 (October 2021), Pages: 151-160

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 Original Research Paper

 Title: Impact of the ownership structure on the diversification strategy

 Author(s): Marouan Kouki *

 Affiliation(s):

 Faculty of Computing and IT, Northern Border University, Arar, Saudi Arabia

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-5699-0910

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2021.10.015

 Abstract:

This study examines the ownership characteristics that influence the decision to diversify. The Logit model was used to show that ownership structure influences the probability of diversification. Empirical tests show that the presence of the first large shareholder increases the probability of diversification during the financial crisis period. This behavior is observed for the coalition of second and third shareholders only for periods during and after the crisis. The average level of probability for firms to be diversified is between 20% and 50%. Furthermore, results show that industrial firms and more willing to be diversified than firms in the financial sector. 

 © 2021 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Ownership structure, Blockholders, Diversification, Logit, Herfindahl, Entropy

 Article History: Received 16 June 2020, Received in revised form 4 September 2021, Accepted 20 August 2021

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Kouki M (2021). Impact of the ownership structure on the diversification strategy. International Journal of Advanced and Applied Sciences, 8(10): 151-160

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 Tables

 Table 1 Table 2 Table 3 Table 4   

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