Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs
This study examines the impacts of company diversification strategy on crash risk of stock price with emphasis on agency costs in the companies listed in the Tehran Stock Exchange, TSE. To proceed with research objectives, 120 companies in the TSE were selected for the period 2009-2014. To measure d...
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| Format: | Article |
| Language: | fas |
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Shahid Bahonar University of Kerman
2018-04-01
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| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_1931_eef4830bea06eeed843ee3d7e0690e37.pdf |
| _version_ | 1823969259728928768 |
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| author | Rasoul Baradaran Hassanzadeh (Ph.D) Vahid Taghizadeh Khanqah |
| author_facet | Rasoul Baradaran Hassanzadeh (Ph.D) Vahid Taghizadeh Khanqah |
| author_sort | Rasoul Baradaran Hassanzadeh (Ph.D) |
| collection | DOAJ |
| description | This study examines the impacts of company diversification strategy on crash risk of stock price with emphasis on agency costs in the companies listed in the Tehran Stock Exchange, TSE. To proceed with research objectives, 120 companies in the TSE were selected for the period 2009-2014. To measure diversification strategy, Herfindahl index and entropy index were used, and to measure crash risk of stock price, negative conditional skewness of firm-specific monthly returns and down-to-up volatility measure were used. Panel data method was applied to the tests of hypotheses. The results showed that company's diversification strategy has positive and significant effects on crash risk of stock price. Also, after dividing the companies into two groups of companies with high and low agency costs, the impact of the company diversification strategy on crash risk of stock price were examined distinctly. The results showed that the positive impact of company's diversification strategy on crash risk of stock price in companies with high agency costs is intensive. |
| first_indexed | 2024-12-17T18:54:37Z |
| format | Article |
| id | doaj.art-5c2d7ce339aa42109be68241e4fccaea |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-17T18:54:37Z |
| publishDate | 2018-04-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-5c2d7ce339aa42109be68241e4fccaea2022-12-21T21:36:21ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2018-04-0191639010.22103/jak.2018.9873.23301931Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency CostsRasoul Baradaran Hassanzadeh (Ph.D)0Vahid Taghizadeh Khanqah1Associate Professor of Accounting, Tabriz branch, Islamic Azad University, Tabriz, Iran.Ph.D. Student in Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.This study examines the impacts of company diversification strategy on crash risk of stock price with emphasis on agency costs in the companies listed in the Tehran Stock Exchange, TSE. To proceed with research objectives, 120 companies in the TSE were selected for the period 2009-2014. To measure diversification strategy, Herfindahl index and entropy index were used, and to measure crash risk of stock price, negative conditional skewness of firm-specific monthly returns and down-to-up volatility measure were used. Panel data method was applied to the tests of hypotheses. The results showed that company's diversification strategy has positive and significant effects on crash risk of stock price. Also, after dividing the companies into two groups of companies with high and low agency costs, the impact of the company diversification strategy on crash risk of stock price were examined distinctly. The results showed that the positive impact of company's diversification strategy on crash risk of stock price in companies with high agency costs is intensive.https://jak.uk.ac.ir/article_1931_eef4830bea06eeed843ee3d7e0690e37.pdfcorporate diversification strategycrash risk of stock priceagency costs |
| spellingShingle | Rasoul Baradaran Hassanzadeh (Ph.D) Vahid Taghizadeh Khanqah Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs مجله دانش حسابداری corporate diversification strategy crash risk of stock price agency costs |
| title | Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs |
| title_full | Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs |
| title_fullStr | Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs |
| title_full_unstemmed | Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs |
| title_short | Impacts of Company Diversification Strategy on Crash Risk of Stock Price with Emphasis on Agency Costs |
| title_sort | impacts of company diversification strategy on crash risk of stock price with emphasis on agency costs |
| topic | corporate diversification strategy crash risk of stock price agency costs |
| url | https://jak.uk.ac.ir/article_1931_eef4830bea06eeed843ee3d7e0690e37.pdf |
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