Corporate Diversification and Firm Value - An Empirical Analysis of Semi-Conductor Industry

• Main Authors: Ming Chou Hsieh, 謝銘洲
• Other Authors: Feng Teng Lin
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/28879011929959955926

碩士 === 樹德科技大學 === 金融與風險管理系碩士班 === 99 === This study tries to investigate how diversification strategies affect firm value. After collecting the samples in Taiwan’s semi-conductor industry, we get a totally 10-year sample over the period during 2000 to 2009. With the help of Standard Industrial Classification System of the Republic of China (CSIC) and our sample selection rules, we obtain the necessary data and try to analyze whether diversification strategies increase or decrease firm value within the 10-year observation period. This study applies descriptive statistics and regression analysis to discuss how diversification affects firm value. The mainly empirical evidences are as follows: There is significant positive relation between diversification strategy and firm value in Taiwan’s semi-conductor industry i.e. the higher the diversification level is, the higher the firm value is. Other factors such as capital structure, Firm size are significant negative to diversification firm value. There is significant positive relation between profit ability/research and development expense ratio i.e. the bigger the profit ability/ research and development expense ratio is, the higher the firm value is. But there is no significant relationship between earnings before interest and tax ratio/total sales growth rate and diversification firm value.