Diversification Strategy and Financial Performance of Listed Conglomerate Companies in Nigeria

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1. Verfasser: Kazeem A. SOYINKA, Mofehintolu T. AKINNOLA, Blessing U. OLADIPO and Sarah O. PUKE
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Veröffentlicht: Zenodo 2026
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author Kazeem A. SOYINKA, Mofehintolu T. AKINNOLA, Blessing U. OLADIPO and Sarah O. PUKE
author_facet Kazeem A. SOYINKA, Mofehintolu T. AKINNOLA, Blessing U. OLADIPO and Sarah O. PUKE
contents <p><strong><span lang="EN-US">Abstract</span></strong></p> <p><span lang="EN-US">Despite recognising diversification as a key strategy to boost firm value, there is limited and mixed empirical evidence on how its various dimensions affect the financial performance of Nigerian listed conglomerates. Most studies focus on single diversification measures or use diverse firm samples, missing the unique strategic profiles of conglomerates. This study examines how product, market, geographical, and asset diversification influence the financial performance of Nigerian listed conglomerates. Using a longitudinal approach, it analyses secondary data from the annual reports of six purposively selected conglomerates over ten (10) years (2015–2024), applying Panel Least Squares regression. Results show that all diversification types positively and significantly impact Market Value Added (MVA), indicating that diversification improves firm value via risk mitigation, revenue stability, and resource efficiency. The findings highlight the importance of strategic diversification for enhancing market value among Nigerian conglomerates. Policy recommendations suggest managers align diversification with core strengths, improve oversight, and implement rigorous investment evaluation. Policymakers should also foster stable macroeconomic conditions and policies that support long-term performance and investor confidence.</span></p> <p><strong><em><span lang="EN-US">Keywords: </span></em></strong><span lang="EN-US">Asset; Diversification strategies; Geographical; Market value added; Product</span></p>
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spellingShingle Diversification Strategy and Financial Performance of Listed Conglomerate Companies in Nigeria
Kazeem A. SOYINKA, Mofehintolu T. AKINNOLA, Blessing U. OLADIPO and Sarah O. PUKE
Asset; Diversification strategies; Geographical; Market value added; Product
<p><strong><span lang="EN-US">Abstract</span></strong></p> <p><span lang="EN-US">Despite recognising diversification as a key strategy to boost firm value, there is limited and mixed empirical evidence on how its various dimensions affect the financial performance of Nigerian listed conglomerates. Most studies focus on single diversification measures or use diverse firm samples, missing the unique strategic profiles of conglomerates. This study examines how product, market, geographical, and asset diversification influence the financial performance of Nigerian listed conglomerates. Using a longitudinal approach, it analyses secondary data from the annual reports of six purposively selected conglomerates over ten (10) years (2015–2024), applying Panel Least Squares regression. Results show that all diversification types positively and significantly impact Market Value Added (MVA), indicating that diversification improves firm value via risk mitigation, revenue stability, and resource efficiency. The findings highlight the importance of strategic diversification for enhancing market value among Nigerian conglomerates. Policy recommendations suggest managers align diversification with core strengths, improve oversight, and implement rigorous investment evaluation. Policymakers should also foster stable macroeconomic conditions and policies that support long-term performance and investor confidence.</span></p> <p><strong><em><span lang="EN-US">Keywords: </span></em></strong><span lang="EN-US">Asset; Diversification strategies; Geographical; Market value added; Product</span></p>
title Diversification Strategy and Financial Performance of Listed Conglomerate Companies in Nigeria
topic Asset; Diversification strategies; Geographical; Market value added; Product
url https://doi.org/10.5281/zenodo.18292403