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dc.contributor.advisorBhabra, Gurmeet
dc.contributor.authorAlmaskati, Nawaf Abdulnabi Ebrahim
dc.date.available2013-11-03T19:49:50Z
dc.date.copyright2013
dc.identifier.citationAlmaskati, N. A. E. (2013). Diversification and Corporate Governance: The New Zealand Case (Thesis, Master of Commerce). University of Otago. Retrieved from http://hdl.handle.net/10523/4373en
dc.identifier.urihttp://hdl.handle.net/10523/4373
dc.description.abstractI find that diversified firms in New Zealand are valued at a discount of 18.8% to 41.7% compared with their focused counterparts. The results also show that these firms tend to be valued less negatively during crisis times than normal times. Furthermore, I find evidence to support the argument that the observed discount is partly caused by the presence of higher agency issues in the diversified firms. When adding several governance variables as explanatory variables, I report a proportional decrease between 14.9% and 21.3% in the previously reported diversification discount. This suggests that the observed diversification discount is partly caused by poor corporate governance. The results further suggest that out of the five board structure variables covered by my study, the size of the board, its busyness and whether or not the compensation of directors includes equity-based compensation are major contributors to the reported discount. Although the association between diversification effect and governance practices becomes weaker, the conclusions generally hold after controlling for endogeneity using two-way fixed-effects and dynamic-panel generalized method of moments (GMM) models.
dc.language.isoen
dc.publisherUniversity of Otago
dc.rightsAll items in OUR Archive are provided for private study and research purposes and are protected by copyright with all rights reserved unless otherwise indicated.
dc.subjectCorporate Governance
dc.subjectNew Zealand
dc.subjectDiversification
dc.subjectNZX
dc.subjectNZSE
dc.subjectFirm Value
dc.subjectConglomerates
dc.subjectDiversified
dc.subjectFocused
dc.titleDiversification and Corporate Governance: The New Zealand Case
dc.typeThesis
dc.date.updated2013-11-01T03:36:03Z
dc.language.rfc3066en
thesis.degree.disciplineAccountancy & Finance
thesis.degree.nameMaster of Commerce
thesis.degree.grantorUniversity of Otago
thesis.degree.levelMasters
otago.interloanyes
otago.openaccessAbstract Only
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