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.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
