Effect of corporate diversification on firm value and performance in New Zealand
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Cite this item:
Bate, A. J. (2006, February). Effect of corporate diversification on firm value and performance in New Zealand (Thesis). Retrieved from http://hdl.handle.net/10523/1365
Permanent link to OUR Archive version:
http://hdl.handle.net/10523/1365
Abstract:
This study finds that diversified firms in New Zealand are of lower value and perform more poorly than undiversified firms, using a sample from 1993-2005. Furthermore, the lower value of diversified firms cannot be explained by their poorer performance or by agency conflicts. However,there is no evidence that supports diversified firms being of lower value or performing poorly in comparison to undiversified firms, once the endogeneity of diversification is controlled for. These findings suggest that while diversified firms are associated with lower value and poorperformance, diversification itself is not the cause.
Date:
2006-02
Degree Discipline:
Finance and Quantitative Analysis
Pages:
48
Keywords:
corporate diversification; firm value; firm performance; diversification discount; diversification; endogeneity; New Zealand; fixed effects; excess value
Research Type:
Thesis
Notes:
Material from this work is intended for publication and full text of this item will not be publicly available until permission is granted by the publisher.
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