Options
Diversification strategy, ownership structure and financial crisis: Performance of Chinese private firms
Author(s)
Date Issued
2015
Citation
Shen, N. N., Au, K., & Yi, L. (2015.Jan.17). Diversification strategy, ownership structure and financial crisis: Performance of Chinese private firms. International Conference on Banking, Real Estate and Financial Crises: Hong Kong, China and the World, Hong Kong Shue Yan University.
Type
Conference Paper
Abstract
The relationship between diversification and firm performance varies among institutions and over time. Less is known about the advantageousness of diversification in economy-wide crises, which have occurred frequently in recent years. Using data on nearly 4000 Chinese private companies, we found that diversified firms performed better than focused firms during the recent global financial crisis. The diversification level was positively and linearly related to performance, that is, more diversified firms performed better. Moreover, we found that private firms that are totally owned by the founding owner and his/her family performed worse under crisis.
Availability at HKSYU Library
