Government Intervention, Diversification and Firm Performance: Based on the Endogenous Investigation

摘要

Applying Simultaneous Equation Models With the data of publicly listed firms in china from 2001 to 2008, the paper analyses the performance of diversification based on the dual features of the government intervention and the endogeneity of Diversification. the empirical results indicate that diversification discount change into a significant diversification premium. In addition, government-controlled multisegment firms have lower MV/BV in average than non-government-controlled multi- segment firms while government-controlled single- segment firms have higher MV/Bv in average than non-government-controlled multi-segment firms. Overall, government intervention is not always Grabbing-Hand.