Снижает ли диверсификация финансовую ограниченность телекоммуникационных компаний?

Abstract

Financial constraints reflect either company’s lack of capability to raise the necessary external financing or excessively high cost of such financing. One way to reduce financial constraints is to diversify company’s activities. The article presents a comparative analysis of the impact of different types of diversification (geographical and product) on telecommunication companies’ financial constraints. The sample consists of 103 companies over the period from 2010 to 2018. The level of financial constraints is measured as ASCL-index which allows for more comprehensive characteristics of companies’ financial capabilities on the basis of four indicators: average cash flow, average financial leverage, age and size of the company. The impact of diversification on financial constraints is analyzed by evaluating several models of ordered logit regression. Regression and statistical analysis shows that both product and geographical diversification reduce the company’s level of financial constraints. Moreover, in developing countries, geographical diversification is a priority strategy of reducing financial constraints level for telecommunication companies. The findings of the study can be used by companies’ management to choose an optimal diversification strategy.