Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/114763
Citations | ||
Scopus | Web of Science® | Altmetric |
---|---|---|
?
|
?
|
Type: | Journal article |
Title: | Corporate diversification, executive compensation and firm value: evidence from Australia |
Author: | Choe, C. Dey, T. Mishra, V. |
Citation: | Australian Journal of Management, 2014; 39(3):395-414 |
Publisher: | SAGE Publications |
Issue Date: | 2014 |
ISSN: | 0312-8962 1327-2020 |
Statement of Responsibility: | Chongwoo Choe, Tania Dey, Vinod Mishra |
Abstract: | We estimate the effect of corporate diversification on firm value using a sample of 766 segment-year observations during 2004–2008 for firms listed on the Australian Stock Exchange as of August 2009. In addition to conventionally used measures of diversification, we develop five new measures of diversification that explicitly take into account the degree to which a multi-segment firm’s various segments are in related lines of business. We use three different excess value measures to estimate the valuation effect of diversification. We find that multi-segment firms in our sample enjoyed a significant diversification premium that ranges from 12.4% to 18% depending on the measures of diversification and excess value. We also find some evidence that multi-segment firms benefit more from diversification when their executives are motivated more through long-term incentives such as stock and stock options. |
Keywords: | Corporate diversification; executive compensation; excess value |
Rights: | © The Author(s) 2013 Reprints and permissions: sagepub.co.uk/journalsPermissions.nav |
DOI: | 10.1177/0312896213499027 |
Grant ID: | http://purl.org/au-research/grants/arc/LX0989655 |
Published version: | http://dx.doi.org/10.1177/0312896213499027 |
Appears in Collections: | Aurora harvest 3 Economics publications |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.