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This study analyzed the effect of industrial and international diversification on the profitability and operational risk of Brazilian companies. The sample comprised 210 publicly traded Brazilian companies, who trade shares on the B3 stock exchange. The results of the study showed that industrially diversified companies both reduce operational risk and increase profitability in terms of return on assets, while companies that are internationally diversified reduce their profitability. As well, the companies that diversify both industrially and internationally, see increasedoperational risk. This study is relevant to the investigation of the relationship of industrial and international diversification in companies' operating results, as it indicates that, in the context of Brazil, industrial diversification tends to improve operating results, with an increase in profitability and a reduction in operating risk. [ABSTRACT FROM AUTHOR]

The phenomenon of transfer pricing has emerged as common practice among highly diversified companies. It can be qualified as "prices with related parties" including specifically transfer of goods, providing of services, transfers and other transactions concerning intangibles, cost contribution, arrangements and business restructurings. In a context of growing globalization and in view of the importance that multinational companies are assuming in the economic world, the regulation of transfer pricing represents an issue of significant importance, both for taxpayers and financial administrations, as it allows the determination of companies' taxable income operating inside tax jurisdictions. [ABSTRACT FROM AUTHOR]

The authors investigate how diversified business groups influence the structural reform–firm strategy relations given its effect on strategic choice and its implementation in a large emerging economy: India. By integrating business group, industrial organization, and international business literature, the authors predict considerable differences in the exporting behavior of business group–affiliated firms on the basis of their market competitiveness and governance dynamics. The authors test their predictions empirically with longitudinal data of 6,119 Indian firms over a 21-year period starting from 1991–1992 to 2011–2012 and find support for most of the hypotheses. These findings suggest that knowledge of the heterogeneity within business groups are essential for understanding the response of business group affiliates in light of the progression of reform process in India. This study thus contributes to a more complete conceptual understanding of the strategic responses of promarket reforms of business group affiliates in emerging economies. [ABSTRACT FROM PUBLISHER]

In 2015, Brazil has taken steps toward re-consolidating its domestic defense industry. In the 1980s, Brazil built a dynamic and diversified defense industry. The state-driven effort resulted in a tripod strategy, where the state, state-run companies, and their private sector became the pillars of Brazil's defense industry. Brazil developed an export-driven defense industry; where close to 80–90% of its output was exported to Latin American, African, Arab, and Asian nations. In the 1980s, Brazil became the world's fifth largest exporter of defense products and services, exporting to over 40 countries. In the 1990s and 2000s, Brazil's defense industry suffered a dramatic reduction in size, diversification, and momentum. Successions of domestic political and economic policies have relegated Brazil's once emerging defense industry to a marginal position in the global defense industry. This article analyzes future prospects, challenges, and growth strategies for Brazil's defense industry. [ABSTRACT FROM AUTHOR]

Diversification is an alternative for sustainability and competitiveness for the sugar industry. The objective of this work was to develop an index for diversification, integrating the limiting bio-physical, ecological and socio-economic factors in municipalities producing sugarcane (Saccharum officinarum) in a sugarcane region of Mexico, using a multi-criteria evaluation of analytical hierarchies in a Geographic Information System as an approach methodology. Results indicate that the impact of social-economic limiting factors has an importance of 71.2%, while the importance for the ecological factors is 29.4%. Regarding the socio-economic factors, experience in diversification projects and quantity and quality production of raw materials represent 30% of the capacity for diversifying cane-producing municipalities. These municipalities ought to be incorporated in the decision-making and the formulation of differentiated public policies for the sustainability of this agro-industry in cane-producing regions. The decisions of technological scope or techniques applied to date to achieve diversification do not depend on one factor alone; therefore, the resources, capacities, abilities, education and motivation of the sugarcane producers could be seen as the essential motor for local diversification. [ABSTRACT FROM AUTHOR]

The article discusses an economic growth strategy for independent communities to use their local talent and thrive in the face of the changing economic conditions. It explores the do-it-yourself economy approach that is founded on small, locally-owned, but diverse businesses. It recommends an economic development strategy that needs to consider innovative tools to deal with the changing reality.

El artículo discurre sobre el desarrollo de estrategias y modelos de negocios. Los autores comentan sobre los métodos necesarios para crear valor y mantener la rentabilidad empresarial. También se consideran varios tipos de modelos de negocios, incluyendo desagregados, diversificados y abiertos.

El Salvador has undergone a deep economic transformation over recent decades, from a model based on agro-exports to an open, transnational service-based economy. This transformation has occurred in a context dominated historically by a small group of elite families that formed family-owned diversified business groups (DBGs). This paper studies the leading groups' strategies in confronting transnationalisation. It shows that the DBGs have adapted to the new realities through a combination of sector shifts, internationalisation and the adoption of different kinds of relationships with multinationals. In spite of this, there is little evidence that the DBGs have become less important or subordinate to multinational corporations. Rather, they have, in different ways, exploited their local and regional knowledge and networks to confront competition at home and expand at the regional level. [ABSTRACT FROM PUBLISHER]

The development of the communications sector of a given country is related to the economic development of that country, and it is possible to demonstrate this connection statistically, as has been shown by research institutions such as the International Telecommunications Union (ITU). As this data is shown only in simple numerical form, and do not take into account interlinking factors, it is important to carry out research which evaluates the connection between relevant variables in the field. This work aims to analyze the factors of technological development which best describe the economic positioning of a country, connecting the usability of communication services with economic status. Data from 56 countries, chosen at random, were used. A datamining survey was carried out, which analyzed data already collected by institutions such as ITU, World Bank, etc. Each factor of usability, preference, and service analyzed is understood as a reflection of other services already developed, as some studies of the literature on this topic (ARRUDA FILHO; CASSIA; MARINO, 2008; CHERRY, 2007; DAVIES; HARDT; KELLY, 2004) argue that economic development of certain countries exists as a result of an increase in technological development, whereas others argue exactly the opposite. This paper presents these relationships in certain countries, chosen by the quantity of information available regarding their global development position, directly relating economic growth to communication technologies usage, such as telephone or internet. The paper collected data from two world sources from the mentioned sectors: International Telecommunications Union (ITU) and World Bank. Statistical techniques of linear regression and variance analysis were used for studying the data of 56 countries. It followed that the economic growth is directly related to the communication market growth, being the communication products factors of influence for the economic development. [ABSTRACT FROM AUTHOR]

The article outlines the story of the finance success over the last 30 years, which has been accepted by senior policy-makers and regulators, and the creation and dominance of the big financial conglomerates. It contrasts the story with an account of the harms caused by finance and the conglomerates. It explains why the U.S. President Barack Obama Administration's preference for incremental reform of the conglomerates will not succeed, because the firms will control and undermine the reforms.

This study assesses the interactive effects of product diversification (PD), multinationality (MN), and country involvement (CI) on firm performance, and explores these effects not only in pairs but also in groups. It locates the optimal combinations of these three variables that will help firms to maximize their performance. The results indicate that when these three variables interact in pairs (that is, MN and CI, respectively, interact with PD), their impact on firm performance are opposite, when they interact as a group (MN and CI jointly interact with PD), they mutually strengthen or cancel each other out, and the optimal combinations differ depending on the interactions of PD with MN and CI. [ABSTRACT FROM AUTHOR]

Abstract: The paper examines restructuring cycles among diversified major telecom operators from two different perspectives, the governance deficiency perspective of agency theory and the governance efficiency perspective of transaction cost economics, the former being less consistent with the spirit of recent pro-competitive regulatory reforms than the latter. This restructuring cycle describes how incumbent operators grew larger and more diversified during the telecom boom before they were transformed into more efficient scale and scope either by economizing managers or by market forces along with actively intervening owners and bondholders during the subsequent telecom bust. A cycle whose expansion phase is characterized by highly acquisitive companies expanding into non-related activities followed by a delayed contraction phase where overdiversified companies are being restructured by market forces and intervening owners and bondholders is consistent with the reform-non-compliant governance deficiency thesis of agency theory. A cycle whose expansion phase is characterized by acquisitive companies expanding into related activities followed by a contraction phase where companies are restructured by their own managers after having realized that previously acquired assets have become more redeployable and their services more tradable is consistent with the reform-compliant governance efficiency thesis of transaction cost economics. Now, in the aftermath of the contraction phase of the business cycle, more narrowly focused incumbents are once again ready for another round of acquisitive expansion. Anecdotal evidence from five restructuring cases, along with available secondary information about the development of the industry, seems to support the reform-noncompliant governance deficiency thesis of agency theory rather than the reform-compliant governance efficiency thesis of transaction cost economics. [Copyright &y& Elsevier]

The discussion with respect to whether there exists a relationship between diversification strategies and a firm's business results has been the subject of abundant analysis in the specialized literature on the subject. The aim of this work is to analyze the theoretical evidence that exists on this relation, by way of an ample revision of the most important studies that have dealt with the question; at the same time emphasizing the most relevant conclusions that have been reached. Lastly, after revising the literature previously mentioned, this study's proposals are presented; as also a chart that synthesizes the different studies that have been made. [ABSTRACT FROM AUTHOR]

The authors of the paper had analyzed the variety of services, geographical markets, types of objects under implementation and other ratios of activities of seven biggest Lithuanian construction companies in order to determine the optimal level of diversification of construction products, geographical markets and the number of construction related services. The results of the research have shown that it is purposeful to diversify company's activities not only by the type of activities, but also by geographical markets and the purpose of construction production. The combinations of different types of difersification influence the level of remover growth and the change of over ratios which reflect the efficiency of construction company. As a result the optimal variants of diversification by the type of activities, by the type of construction production and geographical markets were proposed. [ABSTRACT FROM AUTHOR]

This paper presents the results of an investigation into the social and cultural factors that influence the consolidation of business conglomerates. A neo-institutional theoretical perspective is used, combined with the social camp concept, to study the institutional distance and dominant relationships in the conglomerates. These aspects are qualitatively applied to 39 direct interviews with micro-cluster tool-making businesses, retailers and support agencies. The paper concludes that there is an asymmetrical accumulation of specific capital, a variety of organizational subcultures, and a predominance of commercial relationships characterized by subordination and domination, rather than the cooperation and interaction that are vital to a cluster's success. The results help understand the dynamics and function of clusters, and open a line of socio-cultural investigation of business conglomerates that goes beyond traditional economics. [ABSTRACT FROM AUTHOR]

The purpose of the study was to propose an index of corporate diversification. The use of the index was illustrated in a case study of the past and current levels of diversification of television network parent companies in relation to their future-oriented diversification ventures in the new media. The results of the industry case study indicated that the parent companies that are currently the least diversified are most active in new media ventures. [ABSTRACT FROM AUTHOR]