M.A. Thesis:

Business Diversification and future performance with agency cost as moderating

In recent years, the relationship between firm performance and diversity has been a major issue in financial management. The diversification strategy in the business can be influenced the competitive power of a company. The purpose of this research is to investigate the effect of the variety business on the future performance and also to examine the agency costing in related of variety and performance. In order to achieve this goal, the Herfindahl -Hirschman Index for measuring business diversification has been used to evaluate the performance of the asset performance index and for the cost of representing the operating costs index of the firm's sales. The examined sample includes 86 active companies in the Tehran Stock Exchange over a 5-year period between 1390 to 1394. The multivariate linear regression model was used to investigate the relationship between independent variables and dependent variables. We used of Inferential descriptive statistics to examine inferential statistics and Hypothesis test. The results of the research hypothesis test indicate that there is a direct and significant relationship between the business diversification and the future performance of the companies and the agency costing moderates the relationship between future performance and variation. As a result, it can be said that the diversification of business has a positive effects on the companies performance and also it causes to increase the assets of companies, also the agency costing cost can modify this relationship.

Keywords: business diversification- future performance-agency costing