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Diversification Effects on Firm Value and Corporate Governance – Underlying Theories and Case Studies from Thailand

Tangtrakulporn, Janejira and Meesap-Lak, Chutima (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.
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author
Tangtrakulporn, Janejira and Meesap-Lak, Chutima
supervisor
organization
year
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},
  keyword      = {Corporate Diversification,Corporate Governance,Agency problems,Controlling Shareholders,Minority Shareholders,East Asia,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Diversification Effects on Firm Value and Corporate Governance – Underlying Theories and Case Studies from Thailand},
  year         = {2010},
}