The Empirical Study of Global Financial Crisis on the relationship between Diversification Strategy, Corporate Governance Mechanisms and Corporate Performance
| Autor: | Sen-Jen Su, 蘇森仁 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 This paper investigates the impact of diversified strategy and annual report disclosure on firms’ market performance of and discuss the moderating effect of Global Financial Crisis on the relationship between diversified strategy, annual report information disclosure and firms’ performance. We adopted Entropy method to measure the degree of group diversification and follow 6th Security and Futures Institute evaluation system, and then use content analysis method to measure the annual report information disclosure. By using a sample of interlocking group of firms listed on the Taiwan Stock Exchange (TSE) and Taiwan’s over-the-counter market from 2004 to 2009. The regression results find that there exists significantly negative association between firm performance and total diversified strategy. However, there exists insignificantly and significantly negative effect of related and unrelated diversification on market performance, respectively. There exists significantly positive relationship between annual report disclosure and market performance. “Financial and operating information transparency” and “ownership structure and components of board of directors” have significantly negative and positive effect on Tobin’s Q, respectively. Our evidence indicates that board of directors control firms’ disclosure policy. Besides, our empirical results also find that in global financial crisis period, the benefit of risk diversification of total diversification strategy is higher than its’ cost, and thus total diversified strategy has significantly positive effect on firm’s performance. Annual report information has significantly negative effect on firm’s performance. On the contrary, the cost of total diversification strategy is higher than its’ benefit, and thus total diversified strategy has significantly negative effect on firm’s performance. Annual report information has significantly positive effect on firm’s performance during non-global financial crisis. The coefficients of cross product item between related diversification strategy, unrelated diversification strategy and dummy variable of global financial crisis are significantly positive. The coefficients of related diversification strategy and unrelated diversification strategy are significantly and insignificantly negative. The coefficients of cross product item between “financial and operating information transparency”, “ownership structure and components of board of directors” and dummy variable of global financial crisis are insignificantly negative. The coefficients of “financial and operating information transparency”, “ownership structure and components of board of directors” are insignificantly a negative and significantly positive, respectively. These evidence indicate that controlling organization and concerned stakeholders do not easy monitor firms’ operation, and then firm has incentive to reduce information disclosure during global financial crisis. While “financial and operating information transparency” and “ownership structure and components of board of directors” have insignificantly negative and significantly positive, respectively. These results reveal that controlling organization and concerned stakeholders do easy monitor firms’ operation, and then firm has pressure to promote information disclosure during non-global financial crisis. The contributions of this research include third fold: First, it provides evidence that the impact of groups diversified strategy on firm performance. Second, we replenish evidence about the effect of annual report information disclosure on groups’ company performance. Third, we provide the moderating effect of global financial crisis on the relationship between diversified strategy, annual report disclosure and firms’ performance |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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