The Effects of International and Industrial Diversification on Firm Value: Evidence from Turkey

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Atıf İçin Kopyala

BANK S., ÜNAL H., Guneysu Y.

ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, cilt.17, sa.2, ss.519-534, 2022 (ESCI)

• Yayın Türü: Makale / Tam Makale
• Cilt numarası: 17 Sayı: 2
• Basım Tarihi: 2022
• Doi Numarası: 10.17153/oguiibf.1082288
• Dergi Adı: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES
• Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
• Sayfa Sayıları: ss.519-534
• Anahtar Kelimeler: International Diversification, Industrial Diversification, Firm Value, Institutional Investors' Share Ownership, CORPORATE DIVERSIFICATION, INSTITUTIONAL OWNERSHIP, AGENCY COSTS, MARKET VALUE, CASH FLOW, TOBIN Q, PERFORMANCE, BENEFITS, RISK
• Karadeniz Teknik Üniversitesi Adresli: Hayır

Özet

This study determined that international diversification does not have a significant effect on the value of the firms operating in the manufacturing sector among the firms listed in the Borsa Istanbul Equity Market; however, that the industrial diversification increases the firm value by using the "Excess Value Methodology" developed by Berger and Ofek (1995) and modified by Fauver et al (2004). Acquired diversification premiums were also observed to continue in the case of control of institutional investors' share ownership; in addition, a positive relation was found between institutional investors' share ownership and firm value at low share ownership, while it is negative in high ownership rates.