Impact of International Diversification on Company’s Perrormance

Effects of international diversification on firm performance was discussed by many authors. Modern studies still cannot decide on the relationship between internationalization and performance of the company. Results obtained in existing literature differ with the selection of variables, country and time period. All-in-all, we examine three following problems: influence of internalization on firm performance and effects of product diversification and intangible assets on this relationship. Moreover, this study aims to find effects of two important events on firm performance: “Crimean spring” and COVID-19. Using a sample of 41 internationally diversified Russian companies for period 2011-2020, evidence of positive linear relationship between international diversification and firm performance was found. Although, we did not find evidence that product diversification and intangible assets moderate objective relationship in any way, increase in level of intangible assets seems to enhance firm performance. In addition, both Sanctions against Russia and COVID-19 had strong negative effect on firm performance.