Pengaruh Derajat Diversifikasi terhadap Performa Pasar Perusahaan: Studi di Bursa Efek Indonesia untuk Periode 2005 - 2015

Diversification strategy that often used by many firms still a subject of controversy. Based on previous researches, the test of diversification degree effect towards performance still generated various result. Not only diversification strategies, the selection of related and unrelated diversification also give various impact. This research examines the effect of diversification level and relatedness diversification level towards firm’s market performance. For degree of diversification involves 1.794 observations, meanwhile related diversification involves 1.437 observations of non financial companies which are listed in Jakarta Composite Index from 2005 to 2015. Degree of diversification negatively affects market performance. However, degree of diversification is found with non-linear association with market performance, which means beyond certain point the effect becomes positive. Furthermore, degree of related diversification has negative effect, which indicating better market performance for conglomerates (unrelated diverified firms).