국제다각화가 기업의 경영성과와 가치에 미치는 영향

Abstract

Global competition is the services or products provided by competing companies that serve international customers. Global competition has allowed companies to buy and sell their services internationally, which opens the door to increased profits and flattens the playing field in business. In the process of market globalization, many Korean firms have been utilizing international diversification strategies to increase sales in oversea markets or to reduce risks based on business diversification strategies. The result of successfully competing in a global market has its benefits, but it's not without its challenges. Companies are seeing that what works domestically, doesn't necessarily work internationally. Cultural differences play a large role in the global market, and there are a couple factors that companies must consider. Therefore, there are mixed empirical results in prior research on globalization effect or diversification effect. Does international diversification affect firm's performance and value of firm? The effect of diversification on firm's performance and value is empirical issue. This study analyzes the effect of international diversification on firm’s performance and value of Korean companies. Domestic companies have actively advanced into global markets to overcome the limitations of domestic market. Corporate international diversification of this kind not only has positive as aspects such as economy of scale and economy of range but negative aspects such as uncertainty of business environment and information asymmetry as well. Therefore, the purpose of this study is to analyze the effect of international diversification on firm’s performance and value of Korean firms. This study investigates the relationship between international diversification and firm’s performance and corporate value, and the effect of international diversification on corporate value based on the corporate profitability and growth potential for Korean companies which are listed on stock market from the year 2004 through 2013. As the results of empirical analyses, it turns out that the higher the level of corporate international diversification is, the better the corporate performance is. On the other hand, international diversification has no general relationship with corporate value. And yet, as the results of analyses only on companies with high level of international diversification, international diversification has positive relationship with corporate value. In addition, it is revealed that the better the firm’s performance and higher the growth potential is, the more positive relationship international diversification has with corporate value. This result implies that international diversification has positive effect on the corporate value of companies with better performance and higher growth potential. This study has its meaning in that while prior studies only presented relationship between international diversification and corporate value, this study conducts in-depth analyses on the relationship between international diversification and corporate performance and the relationship between international diversification and firm characteristics in the effect of international diversification on corporate value. However, this study has some limitations. First, we just focus on listed firms. So the results of this study could not be applied to unlisted firms. Second, Tobin’s Q, the proxy of corporate value, could has measurement error. Third, we measure firm’s international diversification level based on the level of foreign sales and foreign assets. However, these measures could miss some aspects of international diversification.