TY - JOUR
T1 - Corporate diversification strategies and capital structure
AU - Singh, Manohar
AU - Davidson, Wallace N.
AU - Suchard, Jo Ann
PY - 2003/3
Y1 - 2003/3
N2 - 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.
AB - 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.
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U2 - 10.1016/S1062-9769(02)00124-2
DO - 10.1016/S1062-9769(02)00124-2
M3 - Article
AN - SCOPUS:0037334821
SN - 1062-9769
VL - 43
SP - 147
EP - 167
JO - Quarterly Review of Economics and Finance
JF - Quarterly Review of Economics and Finance
IS - 1
ER -