This study analyzes the impact of industry diversification strategies on the crash risk of firms listed on KOSPI from 2009 to 2021. The findings suggest that diversification can reduce the crash risk, especially for firms experiencing sales growth. Th...
This study analyzes the impact of industry diversification strategies on the crash risk of firms listed on KOSPI from 2009 to 2021. The findings suggest that diversification can reduce the crash risk, especially for firms experiencing sales growth. The study further reveals that the inhibitory effect of diversification on crash risk is more pronounced in firms with lower ownership concentration.
This study provides valuable insights into the diversification effect and crash risk for domestic firms, an area previously unexplored in Korea. The analysis results offer valuable information for managers and market investors. Furthermore, the study extends the research on diversification and crash risk.