The Effect of International Diversity and Corporate Resources on the Company's Performance

Abstract

In recent years, the relationship between performance and diversity of the company has been an important issue in financial management. Diversification Strategies in the business of companies could affect the competitive balance in an industry. On the other hand, specific economic conditions of the operating companies have caused the competitive advantage of these companies not to be based on their tangible assets. What make these companies competitive in today’s economy are intangible assets, i.e. their intellectual capital. This study aimed to investigate the effects of international diversification strategy and company resources on performance of the company with control variables of financial leverage and firm size. The statistical population were Tehran Stock Exchange's member companies. According to the requirements of sample selection 122 companies were studied during the years from 2008 to 2013. To test the hypothesis, required data were collected from companies’ financial statements, and after performing the required calculations, the data were analyzed using SPSS software, and the hypotheses were approved with confidence level of 95%. The results show there is a significant relationship between variables of international diversity, intellectual capital, marketing assets and performance of the company.