Asian Journal of Economics, Business and Accounting

This study was carried out on impact of corporate diversification on the sustainability of healthcare companies in Nigeria. To determine the relationship between corporate diversification and organizational sustainability, corporate diversification was measured using geographic diversification (GEODIV), operational diversification (OPDIV), and product diversification (PRODIV), while sustainability, on the other hand, was measured using Kinder Lydenberg Domini (KLD) rating system on social-environmental performance. Ex post facto design was used and the data were collected from the annual reports and accounts of the listed healthcare companies in Nigeria for the period up to 2016-2020. The OLS model was used in the data analysis and the results of the study show that geographic diversification, operational diversification & product diversification have positive and a significant effect on corporate sustainability at a significant level of 1%. Therefore, the study concluded that corporate diversification ensures organizational sustainability in Nigeria. Hence, the study recommended that business organizations should engage in diversification (GEODIV, OPDIV & PRODIV) as this ensures organizational sustainability. Hence, proper management of diversification decisions is required, as over-diversification could lead to a deterioration in the company's financial performance.