Relation between corporate diversification and firm value
Author(s):
Abstract:
Considering the increasing global competition and complex global environment,in order to use benefits of synergy, firm diversify their business. During the 1950s and 1960s many corporations hoping to achieve benefits of diversification attempts to diversify their business. Theories that developed by the late 1970s ,generally considered diversification as a beneficial strategy, while some studies after this period, referring to the costs of this action, mainly considered diversification as an activity which led to the depreciation of firm value. This view doesnt last for a long time and subsequent studies showed that corporate diversification alone does not drive the discount or premium, rather the effect on value differs from firm to firm and is heterogeneous across certain industry settings, economic conditions and governance structures. So absolute attitude to this strategy does not seem correct .In general the effectiveness of this strategy depends on whether the benefits of diversification exceeds the costs of the action or not .In this study it will be tried to review previous studies about corporate diversification and firms incentives of diversification and further more the impact of this action on firm value will be examined.
Keywords:
Language:
Persian
Published:
Journal of accounting and social interests, Volume:7 Issue: 2, 2017
Pages:
19 to 34
magiran.com/p1733753
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یکساله به مبلغ 1,390,000ريال میتوانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
توجه!
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.
In order to view content subscription is required
Personal subscription
Subscribe magiran.com for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!