PENGARUH STRATEGI DIVERSIFIKASI TERHADAP RISIKO DAN KINERJA PERUSAHAAN REAL ESTATE DI INDONESIA

Abstract

Diversification is effort to develop business by extending number of segment in business and
geographical and also extends market share or develops various products. The purpose of
diversification are to lesses risk and increases firm performance. Purpose of this research are to
know the influence of diversification on risk and firm performance. Type of data in this research is
panel data type, that suggested to use method of GLS ( Generalized Least Square). Where in this
method can be analysed with two approach model, that is model affects fixed (FEM) and random
model effects ( REM). From both the model can be determined the best model to be used in model
equation.
The results showed that the diversification variable does not affectto total risk and
unsystematic risk, but have effect to systematic risk of the company. Moreover, the results showed
that diversification significantly influence to the market performance of the company, but does not
affect to the company's operational performance. This matter happened because most real estate
companies in Indonesia are diversified have the same effort with core business and have positive
correlation with core business, so diversification does not have effect to firm performance. Result of
this research indicates that diversification of business cannot less risk and cannot increase firm
performance.