Benefits or costs? The effects of diversification with cross-industry knowledge on corporate value under crisis situation
dc.contributor.author | Li, Zhi | |
dc.contributor.author | Wei, Jiuchang | |
dc.contributor.author | Marinova, Dora | |
dc.contributor.author | Tian, Jingjing | |
dc.date.accessioned | 2022-03-31T04:59:12Z | |
dc.date.available | 2022-03-31T04:59:12Z | |
dc.date.issued | 2020 | |
dc.identifier.citation | Li, Z. and Wei, J. and Marinova, D. and Tian, J. 2020. Benefits or costs? The effects of diversification with cross-industry knowledge on corporate value under crisis situation. Journal of Knowledge Management. 25 (1): pp. 175-226. | |
dc.identifier.uri | http://hdl.handle.net/20.500.11937/88220 | |
dc.identifier.doi | 10.1108/JKM-11-2019-0659 | |
dc.description.abstract |
Purpose: This paper aims to explore the explanations of “information effect” and “agency effect” of corporate diversification with cross-industry knowledge under a crisis situation. Design/methodology/approach: Based on an event study of 203 public companies’ crises in China between 2008 and 2018, the authors verify the information and agency effects of corporate diversification under a crisis situation by, respectively, examining the effects of interactions of corporate unrelated diversification with corporate transparency and knowledge deficiency attribution on the stock market’s responses to the crises. Findings: It is found that corporate unrelated diversification serves as a buffer in protecting firm value while attribution of knowledge deficiency can be a burden. The buffering effect is stronger when the corporate transparency is higher but weaker when the crisis is attributed to be caused by corporate tacit knowledge deficiency. Practical implications: Unrelated diversified firms should strengthen information communication with stakeholders so as to break down the stakeholders’ cross-industry knowledge barriers, and thus protect their own value at the crisis’ onset. Also, they can further buffer the loss by reducing stakeholders’ perceptions of the corporate tacit knowledge deficiency revealed in the crisis. Originality/value: This study is the first to illustrate that the information and agency effects of corporate diversification strategy can be partially explained under a crisis situation, which provides meaningful insights about how firms can conduct knowledge management in their daily operations to deal better with corporate crises. | |
dc.language | English | |
dc.publisher | Emerald | |
dc.subject | 1205 - Urban and Regional Planning | |
dc.title | Benefits or costs? The effects of diversification with cross-industry knowledge on corporate value under crisis situation | |
dc.type | Journal Article | |
dcterms.source.volume | 25 | |
dcterms.source.number | 1 | |
dcterms.source.startPage | 175 | |
dcterms.source.endPage | 226 | |
dcterms.source.issn | 1367-3270 | |
dcterms.source.title | Journal of Knowledge Management | |
dc.date.updated | 2022-03-31T04:59:11Z | |
curtin.note |
This is an author-created, un-copyedited version of an article accepted for publication in Journal of Knowledge Management. | |
curtin.department | School of Design and the Built Environment | |
curtin.accessStatus | Open access | |
curtin.faculty | Faculty of Humanities | |
curtin.contributor.orcid | Marinova, Dora [0000-0001-5125-8878] | |
curtin.contributor.researcherid | Marinova, Dora [H-2093-2013] | |
dcterms.source.eissn | 1758-7484 | |
curtin.contributor.scopusauthorid | Marinova, Dora [6701561637] |