Corporate diversification strategies and capital structure

Manohar Singh, Wallace N. Davidson, Jo Ann Suchard

Research output: Contribution to journalArticlepeer-review

50 Scopus citations


Research shows that corporate leverage is positively related to diversification across product lines but negatively related to geographic diversification. Why this difference occurs is an important empirical question since diversification appears to be value destroying. After controlling for geographic diversification, asset turnover, and firm size as well as other variables, we find that diversification across product lines is at best unrelated to debt usage; it may be negatively related to debt usage in some instances.

Original languageEnglish (US)
Pages (from-to)147-167
Number of pages21
JournalQuarterly Review of Economics and Finance
Issue number1
StatePublished - Mar 2003

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics


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