Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies

Corporate diversification has long been a focused and deeply developed field, defined as the process of a company expand its business into different areas. There are mainly three different types of corporate diversification: product diversification (related or unrelated) and geographic market divers...

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Main Author: Liu, Yang
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/29842/
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author Liu, Yang
author_facet Liu, Yang
author_sort Liu, Yang
building Nottingham Research Data Repository
collection Online Access
description Corporate diversification has long been a focused and deeply developed field, defined as the process of a company expand its business into different areas. There are mainly three different types of corporate diversification: product diversification (related or unrelated) and geographic market diversification (home market or international market). Our research is concentrated on the first form of diversification. In addition, the relationship between corporate diversification and firm value has also been researched as a vital issue globally since the multi-segment firms play a significant role in the field of corporate finance. However, the research outcome is still limited by several obstacles and there is no consensus in terms of this topic. Furthermore, most of the existing studies have focused on the developed markets and only a few of them have been conducted under the condition of emerging markets. As for the impact of state ownership on the corporate diversification, most extant literature aims to figure out the relationship between state ownership and firm value, rather than the linkage between state ownership and corporate diversification. Hence, based on the 2011-2014 period data sample of the top 300 publicly listed companies in Shanghai and Shenzhen Stock Exchange, this study has made several conclusions concerning the relationship between corporate diversification, firm value, and state ownership. Using the multiple regression models and the data from Bloomberg and companies’ annual reports, our study has finally come to the conclusion that there is a diversification discount and the state ownership in Chinese PLCs has a positive relationship with the corporate diversification significantly, which is robustly related to the regional institutional development indicators.
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spelling nottingham-298422017-10-19T14:44:28Z https://eprints.nottingham.ac.uk/29842/ Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies Liu, Yang Corporate diversification has long been a focused and deeply developed field, defined as the process of a company expand its business into different areas. There are mainly three different types of corporate diversification: product diversification (related or unrelated) and geographic market diversification (home market or international market). Our research is concentrated on the first form of diversification. In addition, the relationship between corporate diversification and firm value has also been researched as a vital issue globally since the multi-segment firms play a significant role in the field of corporate finance. However, the research outcome is still limited by several obstacles and there is no consensus in terms of this topic. Furthermore, most of the existing studies have focused on the developed markets and only a few of them have been conducted under the condition of emerging markets. As for the impact of state ownership on the corporate diversification, most extant literature aims to figure out the relationship between state ownership and firm value, rather than the linkage between state ownership and corporate diversification. Hence, based on the 2011-2014 period data sample of the top 300 publicly listed companies in Shanghai and Shenzhen Stock Exchange, this study has made several conclusions concerning the relationship between corporate diversification, firm value, and state ownership. Using the multiple regression models and the data from Bloomberg and companies’ annual reports, our study has finally come to the conclusion that there is a diversification discount and the state ownership in Chinese PLCs has a positive relationship with the corporate diversification significantly, which is robustly related to the regional institutional development indicators. 2015-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29842/1/Dissertation-Yang%20Liu.pdf Liu, Yang (2015) Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies. [Dissertation (University of Nottingham only)]
spellingShingle Liu, Yang
Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title_full Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title_fullStr Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title_full_unstemmed Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title_short Corporate Diversification, Firm Value and State Ownership in Chinese Publicly Listed Companies
title_sort corporate diversification, firm value and state ownership in chinese publicly listed companies
url https://eprints.nottingham.ac.uk/29842/