Does Diversification Create or Destroy Firm Value?New Evidence from China
Using a sample of 1645 firms from Shanghai and Shenzhen Stock Exchange，we find diversified firm’s trade at premium compared to specialized firms in Chinese market.The value gain is positively correlated with the degree of diversification，profitability as well as reinvestment,and negatively correlated with firm size.What’s more,the value gain is smaller for state-controlled firms than that for private firms. We provide some potential explanations for the value gain and the premium difference between the two groups.
Diversification excess value ownership stateowned firms private firms
Hui WANG Jian-bing HUANG
School of Management,Fudan University,Shanghai,China
国际会议
The Second China Private Economy Innovation International Forum(第二届中国民营经济创新国际论坛)
浙江台州
英文
715-720
2009-08-21（万方平台首次上网日期，不代表论文的发表时间）