Снижает ли диверсификация финансовую ограниченность телекоммуникационных компаний?
Financial constraints reflect the company's lack of capabilities to attract the necessary amounts of external financing or the excessively high cost of such financing. One way to reduce financial constraints is the diversification of the company’s activities. The article presents a comparative analysis of the impact of different types of diversification (geographical and product) on the telecommunications companies’ financial constraints. The sample consists of 103 companies for the period from 2010 to 2018. The level of financial constraints are measured as ASCL-index which allows getting more complete characteristic of the companies’ financial capabilities on the basis of four indicators: the average cash flow, the 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 telecommunications companies.
The findings established in the study can be used by management of companies to make a choice of optimal diversification strategy.