Paper Title
Relationship between Corporate Diversification and Firm Value: Moderating Role of Corporate Governance

Abstract
While corporate diversification is a fundamental issue both in the management literature and in corporate policy, the question that remains is whether it destroys or enhances firm value. This empirical study examines the moderating role of corporate governance on corporate diversification–value relationship over a 12-year sample period, 2005–2016 for Pakistani. The explanatory variable corporate diversification is measured by using entropy index, whereas managerial ownership and board size are used as proxy for corporate governance that is moderating variable in this study. Furthermore, firm performance, the outcome variable is measured through return on equity (ROE). The results of this study show that corporate diversification is significantly and positively associated with firm value. These results are consistent with information perspective of corporate diversification and firm value. In addition, corporate governance moderates the relationship between corporate diversification strategies and firm value. These results have strategic implications for corporate diversification strategies and are relevant to firm managers, regulators and shareholders. Keywords - Corporate Diversification, Information Asymmetry, Corporate Governance, Agency Theory, Pakistan Stock Exchange