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We consider the effect of reinvestment on shareholder value to answer whether diversification decreases or increases shareholder value. We build static panel regression models for the sample of 1189 Taiwanese firms for 2009-2019. We also account for dynamic features associated with shareholder value and utilize Generalized Method of Moments estimates for a dynamic panel. There is robust evidence that reinvestment activity adds shareholder value. We also argue that current reinvestment activity leads to higher values of the closing price. Analysis reveals that the interaction effect of the normalized value of cash outflow and firm size leads to higher excess returns. [ABSTRACT FROM AUTHOR]

In this study the relationship between customer-related measures and a firm's shareholder value was examined. Based on well-founded theories of customer satisfaction, loyalty, and customer lifetime value (CLV), an integrated structural model is hypothesized in this study to explore the structural nexus among those customer-related factors. A random sample of 1,000 credit card holders with 11 banks in Taiwan were surveyed by means of a questionnaire. A total of 326 valid questionnaires were collected and analyzed. In comparison with CLV and customer loyalty, the empirical findings suggest that the factor of customer satisfaction is the most important indicator of a firm's shareholder value. Study results also indicated that customer loyalty has a negative impact on shareholder value. [ABSTRACT FROM AUTHOR]