The Effect of Diversification On Firms Performance Case Of Saudi Arabia

Abstract

The study examines The Effect of Diversification on Firm Performance Case of Saudi Arabia. The aim of the study investigate how diversification impacts the financial performance of Saudi Arabia Firms Explore the dependent and independent variables that has direct or indirect relationship with performance and diversification. Moreover, the data will be imported from TASI & Bloomberg for five industry Listed in Tadawul which are Food and beverage, Diversified Financials, Food & Staples, Retailing, Energy, Capital Goods, Consumer Durables & Apparel, Materials, Bank in each industry we select five companies total firms forty. During period of time 2012 -2022. The model that will be used Regression model, to minimize the variance between the observed responses and the predicted one. This paper found diversification has a insignificant relationship on firm performance, the diversified firms have lower performance than non-diversified firms, lastly Diversified firms profitable more than undiversified firms.