PENGARUH DIVERSIFIKASI KORPORAT TERHADAP EXCESS VALUE PADA PERUSAHAAN YANG LISTING DI BEI

Abstract

Corporate diversification has been a debate various parties, whether diversification can bring benefits to the company or bring a negative impact to firm value. The purpose of this study was to examine the effect of corporate diversification to excess value. The object of this research are services  company and trading company listed on Indonesia Stock Exchange. This research is an empirical study with purposive sampling method. The instrument used to test the hypothesis is multiple regression analysis. There are 7 proxies used in this research include level diversification, leverage, earning growth, the level of investment opportunities, total segment, size and age of company. Based on  this  research concluded that level diversification, leverage, the level of investment opportunities, size and age of company have significant influence on excess value,   meanwhile earning growth, total segment doesn’t have significant influence on excess value

Key words : diversification, excess value, firm value, segment sales