The diversification–performance nexus: mediating role of information asymmetry

Khan, Mushtaq Hussain; Bhatti, Hina Yaqub; Hassan, Arshad; Fraz, Ahmad

doi:10.1007/s10997-020-09528-8

Cited by 3 publications

(3 citation statements)

References 96 publications

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“…Thus, it can be concluded that the first hypothesis is rejected because the size of the company complexity does not affect firm value. The test results are consistent with Khan et al (2020) and Queen and Fasipe (2015) who state that there is no significant relationship between firm complexity and firm value. On the other hand, the results of the study contradict the results suggested by Jia (2010) that the complexity of companies in China can increase firm value.…”

Section: Based On Tablesupporting

confidence: 87%

“…A company that is successful in its activities will enlarge its business with the hope of earning a profit or increasing the company's reputation by expanding or expanding its business. This has an impact on increasing profits received from many business segments and subsidiaries so that it will attract investors to invest (Jia, 2010;Khan et al, 2020). Even so, the increasing number of subsidiaries or business segments will not only increase the profit of the parent company and dominate market share, but will also cause significant costs of establishment, acquisition costs and operational supervision costs that can become a burden to the company (Queen, & Fasipe, 2015).…”

Section: Table 1: Tax Ratio In Indonesiamentioning

confidence: 99%

“…Transparency can be calculated from the amount of information presented by management in an annual report. Low transparency indicates poor corporate governance and causes large differences in information resulting in weak relationships with investors, and vice versa (Khan et al, 2020;Noviari & Suaryana, 2019). The purpose of this research is to analyze the effect of tax avoidance and company complexity on the value of the manufacturing sector companies listed on the Indonesia Stock Exchange and the effect of information transparency in moderating these two variables.…”

Section: Table 1: Tax Ratio In Indonesiamentioning

confidence: 99%

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Effect of Tax Avoidance and Company Complexity on Firm Value: The Role of Transparency as a Moderating Variable

Suryani

Lastiningsih

Wibawaningsih

2021

JEBS

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This study aims to analyze the effect of tax avoidance and company complexity on firm value with information transparency as a moderating variable so that internal and external parties can evaluate management performance to increase firm value positively. In this study, panel data regression and Moderated Regression Analyst (MRA) were carried out on 78 public manufacturing companies on the IDX during the 2017-2019 period. Tax avoidance is measured by the BTD proxy, the level of complexity is measured by the number of business segments, firm value is measured by Tobin's q proxy, and information transparency is measured by the transparency index released by BAPEPAM. The results show that tax avoidance has a significant negative effect on firm value and firm complexity does not have a significant effect on firm value, while information transparency moderates the relationship between tax avoidance and firm value but is unable to moderate the effect of firm complexity on firm value.

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Section: Based On Tablesupporting

confidence: 87%

Section: Table 1: Tax Ratio In Indonesiamentioning

confidence: 99%

Section: Table 1: Tax Ratio In Indonesiamentioning

confidence: 99%

See 1 more Smart Citation

Effect of Tax Avoidance and Company Complexity on Firm Value: The Role of Transparency as a Moderating Variable

Suryani

Lastiningsih

Wibawaningsih

2021

JEBS

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Reevaluating the conglomerate discount in Germany: the role of design choices

Eulerich,

Fligge

2024

J Bus Econ

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Despite the current trend toward refocusing on the core business, the empirical results on the conglomerate discount are conflicting and provide opposing implications to managers as to whether they should pursue diversification or not. Prior literature has employed various research designs, all of which have the potential to impact results. In this study, we analyze which design choices affect the conglomerate discount. We analyze a sample of approximately 6000 German firm-years between 2000 and 2019 and find a conglomerate discount of 7.9–11.5%. Our findings reveal that design choices related to self-selection have the highest impact on the results. Using a 2SLS approach, we find no causal relationship between diversification and market value despite testing various sets of instruments and excess values. Our results inform practitioners and researchers regarding the impact of design choices on the magnitude and existence of the conglomerate discount.

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To Diversify or Not to Diversify? – Questioning the Diversification Discount in Germany

Eulerich

Fligge

2021

SSRN Journal

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The diversification–performance nexus: mediating role of information asymmetry

Cited by 3 publications

References 96 publications

Effect of Tax Avoidance and Company Complexity on Firm Value: The Role of Transparency as a Moderating Variable

Effect of Tax Avoidance and Company Complexity on Firm Value: The Role of Transparency as a Moderating Variable

Reevaluating the conglomerate discount in Germany: the role of design choices

To Diversify or Not to Diversify? – Questioning the Diversification Discount in Germany

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