The Impact of Diversification Strategy on a Firm’s Value in Real Estate Listed Companies: From the Perspective of Capital Investment

Song, Haixu; Dai, Hongcai; Cai, Tao

doi:10.1061/9780784479377.104

Cited by 1 publication

(2 citation statements)

References 15 publications

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“…Similarly, Dalbor et al (2007) found that there was a positive relationship with long-term debt and the value of the firm. Song et al (2015) examined the stork return performance of real estate firms and found that leverage, cash flow, firm size and investment are its strong positive drivers. Jameson et al (2014) examined the performance of a firm using Tobin's Q and found that leverage is positively driving it; however, they also reported a negative effect of firm size and tangibility on the values of Tobin's Q for family-controlled firms.…”

Section: Literature Reviewmentioning

confidence: 99%

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Financial determinants of value based performance of construction firms in India

Singla

Prakash

2021

IJPPM

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PurposeThe purpose of the study is to examine the value-based performance of firms in construction sector in India using Tobin's Q and Market Capitalization (MCAP) and then determine their significant financial drivers.Design/methodology/approachThe study is based on data from 87 firms engaged in infrastructure, real estate, industrial construction and allied areas in India over a study period of 10 years. Three distinct forms of panel regression models have been developed using Tobin's Q and MCAP as dependent variables. The models developed are using Baltagi's (1981) Error Component 2SLS, Varadharajan-Krishnakumar's (1987) Generalized 2SLS and Arellano – Bower/Blundell – Bond's (1991) dynamic panel.FindingsThe study found that MCAP is a better suited value-based performance measure for construction sector firms in India. The study further reports that the age of the firm, profit after tax, investment in research and development, dividends, leverage and net fixed asset are significant positive drivers, whereas cash flow is a significant negative driver.Research limitations/implicationsThe study is limited to a geographic location; therefore, the findings of this study cannot be generalized.Practical implicationsAs MCAP is a better suited value-based performance measure of a firm in the construction sector, managers should focus on improving profitability, higher research and development activities, higher dividends and higher expenditures on net fixed assets for improvement.Originality/valueThis is an original attempt to examine the value-based performance of firms in the construction sector in India using Tobin's Q and MCAP.

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Section: Literature Reviewmentioning

confidence: 99%

“…2.1.3 Dividends. Song et al (2015) and Saona and San Mart ın (2018) used dividend policy as important driver of firm value. Theoretically, dividend payouts should not only enhance firm value but can sometimes dilute it as well (Saona and San Mart ın, 2018).…”

Section: Research and Development (Randd)mentioning

confidence: 99%

Financial determinants of value based performance of construction firms in India

Singla

Prakash

2021

IJPPM

View full text Add to dashboard Cite

show abstract

The Impact of Diversification Strategy on a Firm’s Value in Real Estate Listed Companies: From the Perspective of Capital Investment

Cited by 1 publication

References 15 publications

Financial determinants of value based performance of construction firms in India

Financial determinants of value based performance of construction firms in India

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