The impact of business diversification on corporate productivity at different corporate life cycles: The moderating role of independent directors

• Main Authors: Yu Chih Tsao, 曹又之
• Other Authors: H. Y. Chang
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/y7etb9

碩士 === 長庚大學 === 工商管理學系 === 106 === This study proposes two factors influencing the relation between business diversification and firm productivity, one is corporate life cycle and the other is independent director ratio. Prior literatures determined that there exists the double-edged sword of diversification strategy in practice and research, and hence we are curious about the factors causing this situation. Based on previous researches, we find the scholars proved that the formulation of diversification strategies would change along with different corporate life cycles; in addition, the execution of firm strategies will be affected by the independent director ratio. Therefore, we add these two factors in our model to examine the impact on the correlation between business diversification and firm productivity. The empirical results show the relationship between diversification and firm productivity is really influenced by the corporate life cycle and the independent director ratio. Especially, when the firm is at mature- or stagnant- phase of life cycle, this relationship is more likely to be affected by the independent director ratio.