Effect of Segment Diversification on Return on Net Worth
Keywords:
Business segment, Return on net worth, Investment decisions, Segment Profitability, CNX NiftyAbstract
The research is focused on comparative study of business segment and return on net worth. The prime objective of the study was to compare diversification status of selected Nifty indexed companies with return on net worth.CNX Nifty considered as benchmark index while selecting companies under the study. Return on net worth is considered as a very important ratio by shareholders in investment decisions making process. The purpose of this study is to find out linkage between profitability with diversification status viz. single and multi-segment approach. It was found that there exists a significant prediction of business segment diversification on profit which is generated by the company for each unit of money invested by equity shareholders.
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