| Summary: | 碩士 === 國立臺北大學 === 金融與合作經營學系 === 103 === In international environment, sustainable development and how to construct the core competitiveness is becoming the focus of attention, therefore, diversification is one of the common strategies which companies around the world have used. Diversification and specialization will become an inevitable trend in business.
This study investigated the relationship between diversification and non-commonality. And determine the results apply with the resource-based theory or information asymmetry point.
This paper selected company listed on the TSE from 2010-2014 as samples, a total of 19 quarter data. We choose the Herfindahl index of the diversification to make multiple regression analysis, and found that there is a significant positive associated with earnings non-commonality and HDI, a significant negative correlation between stock returns non-commonality. This finding is consistent with information asymmetry view of the company.
As diversification can increase the subsidiaries, industries and the kinds of products, so it will increase the complexity of the organizations and the network systems between the enterprise and the external society, resulting in the increase of business complexity. High diversification will increase the costs of mining information for outside investors and the motivation of implementing earnings management by taking advantage of the complexity of the organizational structure for managers. All of these will reduce the transparency of information, leading to declination of the transmission efficiency of information.
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