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Corporate Diversification and Firm Value in Financial Crisis in Vietnam

VNU Journal of Science: Economics and Business

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Field Value
 
Title Corporate Diversification and Firm Value in Financial Crisis in Vietnam
Đa dạng hóa và giá trị doanh nghiệp trong giai đoạn khủng hoảng tài chính tại Việt Nam
 
Creator Kim Duc, Nguyen
Nhung, Nguyen Thi Hong
Nhu, Tran Vu Quynh
 
Description This research aims at assessing the relationship between corporate diversification and firm value ​​in the time of financial crisis in Vietnam. The research sample consists of 42 Vietnamese non-financial enterprises listed on HoSE from the first quarter of 2008 to the fourth quarter of 2011. We used two methods to estimate panel data regression: (1) Regression Method Pooled OLS and (2) Random Effect Model (REM). The results show that: (1) There is relationship between corporate diversification and firm value, however, corporate diversification should be implemented at either national or industrial level; (2) The financial crisis doesn’t dominanate this relationship and the implementation of diversification will contribute to improving the relative valuation of diversified firms in Vietnam regardless of financial crisis. This empirical result will help Vietnamese enterprises have a reference for considering and making decision related to corporate diversification.KeywordsDiversification, firm value, financial crisis.References[1] Pindyck, R. S., Rubinfeld, D. L., Microeconomics, 8th edition, NewYork, Pearson, 2014.[2] Lewellen, W. G., “A pure financial rationale for the conglomerate merger”, The Journal of Finance, 26 (1971) 2, 521-537.[3] Berger, P. G., Ofek, E., “Diversification’s effect on firm value”, Journal of Financial Economics, 37 (1995), 39-65.[4] Volkov, N., Smith, G. C. C., “Corporate Diversification and Firm Value During Economic Downturns”, Quarterly Review of Economics and Finance, 55 (2015), 160-175.[5] Ansoff, H. I., “Strategies for Diversification”, Harvard Business Review, 35 (1957), 5, 112-124. [6] Chandler, A., “The Structure of American Industry in the Twentieth Century: A Historical Overview”, Business History Review, 43(1969) 3, 255-298.[7] Berry, C. 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Nghiên cứu xem xét mối quan hệ giữa đa dạng hóa và giá trị doanh nghiệp trong giai đoạn khủng hoảng tài chính tại Việt Nam. Mẫu nghiên cứu gồm 42 công ty phi tài chính niêm yết trên sàn HOSE giai đoạn quý I/2008 đến quý IV/2011. Tác giả sử dụng hai phương pháp ước lượng hồi quy cho dữ liệu bảng: (1) Hồi quy theo phương pháp Pooled OLS; và (2) Mô hình hiệu ứng ngẫu nhiên (Random Effect Model - REM). Kết quả nghiên cứu cho thấy: (1) Tồn tại mối quan hệ giữa đa dạng hóa và giá trị doanh nghiệp, tuy nhiên việc đa dạng hóa chỉ nên dừng lại ở ngành hoặc quốc gia chứ không nên tiến hành đa dạng hóa cả hai; (2) Cuộc khủng hoảng tài chính không chi phối mối quan hệ giữa đa dạng hóa và giá trị doanh nghiệp, nói cách khác, dù có hay không xảy ra khủng hoảng tài chính thì việc thực hiện đa dạng hóa sẽ góp phần gia tăng giá trị cho các doanh nghiệp tại Việt Nam. Kết quả nghiên cứu này giúp các doanh nghiệp Việt Nam có cơ sở để đưa ra các quyết định liên quan đến vấn đề đa dạng hóa.
 
Publisher Vietnam National University, Hanoi
 
Date 2017-12-07
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://js.vnu.edu.vn/EAB/article/view/4121
10.25073/2588-1108/vnueab.4121
 
Source VNU Journal of Science: Economics and Business; Vol 33 No 4
Chuyên san Kinh tế và Kinh doanh; Vol 33 No 4
2588-1108
2615-9287
 
Language eng
 
Relation https://js.vnu.edu.vn/EAB/article/view/4121/3835
 
Rights Copyright (c) 2017 VNU Journal of Science: Economics and Business