Impact of Product Diversification Strategies on Cash Holdings and its Performance: Mediated by Cash Holdings

[[abstract]]本論文以2008年至2010年的台灣上市一般產業為研究對象，探討產品多角化對現金持有與其經營績效的影響，以現金持有為中介變數。產品多角化程度愈高，代理問題愈嚴重，而招致成本增加趨使內部資金減少，進而影響現金持有，最終造成經營績效下滑。我們的實證結果發現：(1) 產品多角化程度與現金持有呈顯著負相關。(2) 產品多角化程度與經營績效有負向顯著的關係。(3) 產品多角化經由現金持有對經營績效有顯著的負面關係。[[abstract]]This study investigates the impact of the extent of product diversification on the firm’s cash holdings operating performance and use of the cash holdings impact operating performance which examine the sample of Taiwan public traded industry over the period 2006-2010 Product diversification can be associated with agency problems further increase the costs reduce the internal capital and the degree of the cash holdings Finally decline the operating performance We find that (1) There is a significant negative relation between the extent of product diversification and firm’s cash holdings (2) The extent of product diversification is negatively associated with firm’s operating performance (3) Product diversification reduces operating performance through cash holding