Impact Of Diversification On Transparency

This study mainly focuses on the effect of diversification of listed companies on corporate transparency and how the effect takes place. The paper uses two methods to measure corporate transparency of information transparency and accounting transparency. And the paper conducts empirical research to investigate the effect of diversification on corporate transparency using Herfindahl index as a measure of corporate diversification. The methods used in this paper are descriptive statistics and multivariate linear regression.This paper is divided into five chapters:the first chapter is introduction which mainly concerns on the research background and analytic framework; the second chapter is review of existing literatures on diversification and transparency; the third chapter is research design which firstly describes the respective way to measure and calculate diversification and transparency, and then describes sample selection, variable selection, model set. and research hypothesis; the forth chapter is empirical research which mainly uses descriptive statistics and multivariate linear regression to investigate the correlation between corporate diversification and transparency, and further investigate the reason why the correlation exists; the fifth chapter is research conclusions, policy suggestions and implications for the study.Through empirical research, the paper concluded these conclusions:firstly, compared with information transparency, accounting transparency is more suitable when studying company operating and governing; secondly, diversification has a negative correlation with corporate transparency:finally, management fee has a positive correlation with corporate transparency, and related transactions has a positive correlation with corporate transparency, and the interactive variable of management fee associated with trading transaction has a negative correlation with corporate transparency. And the negative correlation between the interactive variable of management fee associated with related transaction and corporate transparency verifies the mechanism that diversification affect corporate transparency through management fee and related transaction.