Impact of corporate diversification on idiosyncratic volatility.

• Main Authors: Liao, Huiyi., Lim, Pan Ni., Tan, Peishan.
• Other Authors: Lim, Chee Yeow
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/9541
• Institution: Nanyang Technological University

We analyze a set of firms during 1997 to 2001 and find that corporate diversification is significantly and negatively related to firm-specific volatility. This study provides confirmative evidence that corporate diversification has the benefit of lowering idiosyncratic volatility.