Research on the Relationship between the Types of Diversification and Systematic Risk of Listed Companies in Taiwan

• Main Authors: Chun-yi Chang, 張君憶
• Other Authors: Shao-chi Chang
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/53932923888971382171

碩士 === 國立成功大學 === 國際企業研究所 === 87 === Most of the researches on diversification are limited to the subjects that are related to value or profitability of the companies. Besides examining the effects of diversification on the companies'' systematic risk and total risk, furthermore, this research also discuss whether different types of diversification of the companies will have significantly different figures of systematic risk and total risk. This research will focus on the angle of " risk", and try to understand whether the companies'' diversification will be better than the investors'' diversification. The analysis techniques are multi-regression model and ANOVA. The results are as follows: 1. The systematic risks between different types of diversification are no significant differences. 2. When financial variables and industry factors are controlled, the types of different diversification have no significant effects on systematic risk. 3. The relationship between financial variables and systematic risk are as follows: market power, capital intensity, operating leverage, and dividend payout ratio, negative; financial leverage and current ratio, positive. Among them, no variables reach significant level. 4. Examining total risk instead of systematic risk, the results are as follows: (1) The total risks between different types of diversification are no significant differences. (2) When financial variables and industry factors are controlled, the types of different diversification have no significant effects on total risk. (3) The relationship between financial variables and total risk are similar to the relationship between financial variables and systematic risk except for market power and current ratio, which reach significant level. In addition, the relationship between operating leverage and systematic risk are insignificant positive, which is the different part. 5. The types of diversification have no effects on total risk and systematic risk, which means that when companies launch diversification, they can not lower down the systematic risk. So companies can not lower risk for their stockholders, investors might as well increase their investment numbers of their portfolio on their own to lower risk.