Pengaruh Diversifikasi Korporat Terhadap Kinerja Perusahaan

Abstract

In recent years, the increasing trend of corporate diversification has been the subject of much debate on the cost and benefit of it. This research provides evidence on corporate diversification and it consequences toward fir* value. Corporate diversification as a part of internal market mechanism can have benefit and cost on the performonce of the .fir*. We estimate that diversification strateglt will reduce fir* value, especially in the situation like Indonesia with less-developed financial ntarket and many contpanies haven't yet recovered fro* economic crisis. We find that the companies with diversified bustness segments have negative excess value contparing with stand alone finns. In relation withfirm characleristics, il shows that the level of leverage and asset si:e positively reloted with the firm value. This result is contrary with the internal capital market hypothesis.