Diversification Effects on Firm Value and Corporate Governance – Underlying Theories and Case Studies from Thailand
(2010)Department of Business Administration
- Abstract
- Agency cost of free cash flow is the most detrimental cost to a firm as it can engage firm in the misuse of capital or over-diversification, and could be so tremendous that deprives all the benefits of diversification, generates diversification discount, and destroys firm value. Corporate governance is a mechanism to safeguard the agency problems, hence, plays an important role to reduce value-destroying diversification strategies. However, corporate governance mechanisms in East Asia are different from those of developed countries due to the predominant agency conflicts between controlling and minority shareholders.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1625075
- author
- Tangtrakulporn, Janejira and Meesap-Lak, Chutima
- supervisor
- organization
- year
- 2010
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Corporate Diversification, Corporate Governance, Agency problems, Controlling Shareholders, Minority Shareholders, East Asia, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 1625075
- date added to LUP
- 2010-06-07 00:00:00
- date last changed
- 2012-04-02 18:08:14
@misc{1625075, abstract = {{Agency cost of free cash flow is the most detrimental cost to a firm as it can engage firm in the misuse of capital or over-diversification, and could be so tremendous that deprives all the benefits of diversification, generates diversification discount, and destroys firm value. Corporate governance is a mechanism to safeguard the agency problems, hence, plays an important role to reduce value-destroying diversification strategies. However, corporate governance mechanisms in East Asia are different from those of developed countries due to the predominant agency conflicts between controlling and minority shareholders.}}, author = {{Tangtrakulporn, Janejira and Meesap-Lak, Chutima}}, language = {{swe}}, note = {{Student Paper}}, title = {{Diversification Effects on Firm Value and Corporate Governance – Underlying Theories and Case Studies from Thailand}}, year = {{2010}}, }