The Relevance between Enterprise Value and Diversification Strategies Adopted in Different Periods of Life Cycle.

• Main Authors: Wei-ting Chen, 陳威廷
• Other Authors: Hsiao-wen Wang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/62b32z

碩士 === 國立中央大學 === 會計研究所 === 102 === The research sheds light on the model proposed by Ohlson (1995) , and uses the Asset-based Entropy to assess the level of International diversification in order to find out how the diversification strategies will affect the enterprise values; also, uses the approach published by Anthony and Ramesh (1982) to measure the enterprises’ life cycles and merely consider how the life cycle will influence the stock price. At the end, the research focuses on how the investors will judge a firm when implementing diversification strategies in different periods. The result shows that when a firm conducts a diversification strategy, the stock price will decrease but not significantly; an investor will also consider the firm’s value differently when the firm is in the different stage of its life cycle. When the firm is in a growth period, an investor will give a positive and significant assessment. The diversification strategy conducted in a growth and mature period has a more influential effect on stock price rather than in a slump period. That is to say, a firm can increase its investment in global market when in growth and mature period.