On the Diversification Strategy of Family Control Groups:The Case of Taiwan

• Main Authors: Pei-Yi Su, 蘇姵伊
• Other Authors: Keng-Shen Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/74027039624036840537

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 95 === This paper investigated the motivations behind the diversification strategies of family control groups and non family control groups respectively. By using a sample consisted of data of listed companies in Taiwan, we test the effectiveness of the agency cost hypothesis and the risk-reduction hypothesis. The major empirical results are as followed. Firstly, it’s shown that family control groups were more diversified than non family control groups. Secondly, family control groups had engaged mostly in related diversification while non family control groups had engaged in unrelated diversification. Thirdly, in the case of family control groups, the value losses from diversification were significant smaller than that of non family control groups. The results of this paper supported the agency cost hypothesis.