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Industrial diversification and shareholders? value in China: the case of Shanghai listed manufacturing firms
The fast growing economy and institutional and economic reforms made the Chinese equity markets the third largest in Asia. This leads to strategies of industrial diversification within Chinese firms. Financial theory suggests that industrial diversification may have advantages in emerging markets, because conglomerates are better able to cope with market imperfections than focused firms. Moreover, diversification through investing in many shares may be costly in imperfect markets. We show that Chinese diversified firms are underperforming in comparison to focused firms. The potential positive effects of industrial diversification are thus smaller than the negative effects. Hubris, agency costs, tunneling, propping, myopic shareholders, management history and inadequate regulation of shareholders? interest may have contributed to the negative diversification effects in China..Printed journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Indonesia: Graduate School of Management FEUI 2009 |
|---|---|
| Edisi | Vol. III, No. 1, Apr 2009 |
| Subjek | China Firm value Industrial diversification panel study Shanghai Stock Exchang |
| ISBN/ISSN | 19781989 |
| Klasifikasi | NONE |
| Deskripsi Fisik | pp. 9-28 |
| Info Detail Spesifik | The South East Asian Journal of Management |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |