Managerial Overconfidence And Corporate Diversification In Switzerland
The purpose of this research study is to investigate the relationship between managerial overconfidence, corporate diversification, firm performance and firm characteristic. This study examines the top 100 public companies in Switzerland from 2010 to 2017 with a total observation of 800. This stu...
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| Main Author: | |
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| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2019
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/37090/1/Lin%20Zeng%20ft.pdf http://ir.unimas.my/id/eprint/37090/ |
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| Summary: | The purpose of this research study is to investigate the relationship between
managerial overconfidence, corporate diversification, firm performance and firm
characteristic. This study examines the top 100 public companies in Switzerland from
2010 to 2017 with a total observation of 800. This study views corporate
diversification in two different aspects which are product diversification and
geographical diversification. Two proxies for the managerial overconfidence, which
consist of overinvestment and net buyers, are used in this study. The empirical findings
indicate that managerial overconfidence does not have effect on product
diversification but there is statistically significant and positive effect on geographical
diversification. Moreover, this study also determines that geographical diversification
has positive relationship with firm performance but has no significance with product
diversification. Lastly, firm characteristics such as firm leverage and firm size are
examined and proved to have positively relationship with either geographical
diversification or product diversification. However, the findings also indicate that firm
performance is statistically significant but shares negative relationship with
geographical diversification. |
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