| Summary: | 碩士 === 國立高雄第一科技大學 === 風險管理與保險研究所 === 101 === Diversification is one of the major strategy for enterprise. Many Literature pointed that diversification is an important factor which will affect the firm''s value and risk ( Barney, 1997; Markides and Williamson, 1994; Rumelt, 1982; Berger and Ofek 1995 ).Past paper studies did not have the consistent result for the firm diversification, the risk and value. Besides, there is less paper studies examine the firm diversification and value with cash holdings, Thus, in this paper we use Tong ( 2011 )propose model to measure the value of corporate cash holdings. Additional, on the risk side (Baush and Plis, 2009; Wan et al. 2011 )find the firm diversification is the major factor which affect the risk. However, the firm diversification and risk paper studies did not have consistent result too. Therefore, we add the risk to examine the risk and the firm diversification.
Through examine the firm diversification, value of corporate cash holdings and risk. In the value part, we find that value of corporate cash holdings in diversification firm have significant result. In the risk part, we also obtain the significant result between firm diversification and risk.
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