Equity Ownership Structure,Investor Protection and Corporate Diversification

Based on the equity ownership structure,the paper sets up the variable of investor protection,and studies the relationship between investor protection and corporate diversification.The results show that there is different investor protection in different equity ownership structure firms,and the difference of investor protection has important effect on firms' diversification decision.And on condition that investor protection is comparatively well protected,the probability of diversification is smaller.However,when firm has been diversified,its value discount is larger on condition that investor protection is comparatively well protected.