Abstract The paper examines the value effects of corporate diversification with controlling shareholders by sampling listed firms from 2004 to 2008. It is found that corporate diversification is not necessarily harmful or beneficial for firms in economy transformation. However, the agency problem arising from the controlling shareholders’ divergence of control rights and ownership deteriorates the market valuation with regard to firm diversification especially when they have much more control rights.
2012, Vol. 1 
[an error occurred while processing this directive] | [an error occurred while processing this directive]
