1 research outputs found
Effects of corporate diversification on firm performance: evidence from the Serbian insurance industry
The aim of this paper is to provide empirical evidence on the relation
between line-of-business diversification and performance for the
insurance companies that operated in the republic of Serbia in
the period 2004ā2014. The research results show that the relation
between risk-adjusted returns measured both by return on assets and
return on equity and line-of-business diversification and performance
measured by entropy is significant and positive, which means that
diversified insurers outperform undiversified insurers. These results
could be useful in decision making for insurance companies as they
suggest the need for diversification (specialisation), growth in size,
capitalization and affiliation (grouping)