Research on the Influence of Diversification Strategy Model on Enterprise Value Based on Principal-Agent Theory

摘要

Based on the principal-agent theory, this paper studies the impact of diversification strategy model on Enterprise Value, using the data of listed companies in China from 2015 to 2016 as a sample. The results show that the diversification strategy change with the external M&A model has higher enterprise value than internal development model. It is because that there're two-tier agency problems in diversification enterprises: agency problem between shareholders and top management, and agency problem between top management and business unit managers. And the agency problem is more serious under the internal change model. This conclusion enriches the theoretical research results of the impact of diversification strategy on enterprise value, and provides a new basis for the decision-making of listed companies and investors.