Research on the relationship between corporate governance structure and diversification strategy

Hai Xu Song; Fu Sheng Wang

doi:10.1109/ICMSS.2011.5998565

Research on the relationship between corporate governance structure and diversification strategy

Hai Xu Song^*
, Fu Sheng Wang

^*Corresponding author for this work

Business School

Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

4 Scopus citations

Abstract

Based on agency theory, this paper studied on the relationship between corporate governance structure and diversification strategy. Choosing 520 listed companies in Shanghai stock on December 31, 2009 as research samples, the paper did an empirical study on the impact of corporate governance structure on diversification strategy. The result showed that concentration of ownership, proportion of legal person shares and proportion of independent directors all had negative correlation with diversification degree significantly; proportion of state owned shares, board size and management compensation all had positive correlation with diversification degree significantly. The empirical result confirmed the theoretical hypothesises and supported the explanation of diversification discount under agency theory.

Original language	English
Title of host publication	International Conference on Management and Service Science, MASS 2011
DOIs	https://doi.org/10.1109/ICMSS.2011.5998565
State	Published - 2011
Event	International Conference on Management and Service Science, MASS 2011 - Wuhan, China Duration: 12 Aug 2011 → 14 Aug 2011

Publication series

Name	International Conference on Management and Service Science, MASS 2011

Conference

Conference	International Conference on Management and Service Science, MASS 2011
Country/Territory	China
City	Wuhan
Period	12/08/11 → 14/08/11

Keywords

Agency theory
Corporate governance
Diversification strategy

Access to Document

10.1109/ICMSS.2011.5998565

Cite this

@inproceedings{5cf9b0be8666443898ff08e7cf056591,

title = "Research on the relationship between corporate governance structure and diversification strategy",

abstract = "Based on agency theory, this paper studied on the relationship between corporate governance structure and diversification strategy. Choosing 520 listed companies in Shanghai stock on December 31, 2009 as research samples, the paper did an empirical study on the impact of corporate governance structure on diversification strategy. The result showed that concentration of ownership, proportion of legal person shares and proportion of independent directors all had negative correlation with diversification degree significantly; proportion of state owned shares, board size and management compensation all had positive correlation with diversification degree significantly. The empirical result confirmed the theoretical hypothesises and supported the explanation of diversification discount under agency theory.",

keywords = "Agency theory, Corporate governance, Diversification strategy",

author = "Song, \{Hai Xu\} and Wang, \{Fu Sheng\}",

year = "2011",

doi = "10.1109/ICMSS.2011.5998565",

language = "英语",

isbn = "9781424465811",

series = "International Conference on Management and Service Science, MASS 2011",

booktitle = "International Conference on Management and Service Science, MASS 2011",

note = "International Conference on Management and Service Science, MASS 2011 ; Conference date: 12-08-2011 Through 14-08-2011",

}

Song, HX & Wang, FS 2011, Research on the relationship between corporate governance structure and diversification strategy. in International Conference on Management and Service Science, MASS 2011., 5998565, International Conference on Management and Service Science, MASS 2011, International Conference on Management and Service Science, MASS 2011, Wuhan, China, 12/08/11. https://doi.org/10.1109/ICMSS.2011.5998565

Research on the relationship between corporate governance structure and diversification strategy. / Song, Hai Xu; Wang, Fu Sheng.
International Conference on Management and Service Science, MASS 2011. 2011. 5998565 (International Conference on Management and Service Science, MASS 2011).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Research on the relationship between corporate governance structure and diversification strategy

AU - Song, Hai Xu

AU - Wang, Fu Sheng

PY - 2011

Y1 - 2011

N2 - Based on agency theory, this paper studied on the relationship between corporate governance structure and diversification strategy. Choosing 520 listed companies in Shanghai stock on December 31, 2009 as research samples, the paper did an empirical study on the impact of corporate governance structure on diversification strategy. The result showed that concentration of ownership, proportion of legal person shares and proportion of independent directors all had negative correlation with diversification degree significantly; proportion of state owned shares, board size and management compensation all had positive correlation with diversification degree significantly. The empirical result confirmed the theoretical hypothesises and supported the explanation of diversification discount under agency theory.

AB - Based on agency theory, this paper studied on the relationship between corporate governance structure and diversification strategy. Choosing 520 listed companies in Shanghai stock on December 31, 2009 as research samples, the paper did an empirical study on the impact of corporate governance structure on diversification strategy. The result showed that concentration of ownership, proportion of legal person shares and proportion of independent directors all had negative correlation with diversification degree significantly; proportion of state owned shares, board size and management compensation all had positive correlation with diversification degree significantly. The empirical result confirmed the theoretical hypothesises and supported the explanation of diversification discount under agency theory.

KW - Agency theory

KW - Corporate governance

KW - Diversification strategy

UR - https://www.scopus.com/pages/publications/80052913192

U2 - 10.1109/ICMSS.2011.5998565

DO - 10.1109/ICMSS.2011.5998565

M3 - 会议稿件

AN - SCOPUS:80052913192

SN - 9781424465811

T3 - International Conference on Management and Service Science, MASS 2011

BT - International Conference on Management and Service Science, MASS 2011

T2 - International Conference on Management and Service Science, MASS 2011

Y2 - 12 August 2011 through 14 August 2011

ER -

Research on the relationship between corporate governance structure and diversification strategy

Abstract

Publication series

Conference

Keywords

Access to Document

Other files and links

Fingerprint

Cite this