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Effect of diversification on capital structure

Journal Article


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Abstract


  • Previous empirical financial studies have paid little attention to the role of diversification strategy on financial choices. This study analyses the financing strategies of multibusiness firms, suggesting the relevance of sorting the diversification phenomena into its related and unrelated components. The implications of our findings are important because they explain earlier contradictory results on capital-structure determinants and offer an explanation of how the degree of product specialization/diversification and the direction of diversification (related or unrelated) translate into different corporate financial behaviours.

Authors


  •   La Rocca, M (external author)
  •   La Rocca, T (external author)
  •   Gerace, Dionigi (external author)
  •   Smark, Ciorstan J.

Publication Date


  • 2009

Citation


  • La Rocca, M., La Rocca, T., Gerace, D. & Smark, C. J. (2009). Effect of diversification on capital structure. Accounting & Finance, 49 (4), 799-826.

Scopus Eid


  • 2-s2.0-70450228406

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1770&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/729

Number Of Pages


  • 27

Start Page


  • 799

End Page


  • 826

Volume


  • 49

Issue


  • 4

Place Of Publication


  • http://www.wiley.com/bw/submit.asp?ref=0810-5391&site=1

Abstract


  • Previous empirical financial studies have paid little attention to the role of diversification strategy on financial choices. This study analyses the financing strategies of multibusiness firms, suggesting the relevance of sorting the diversification phenomena into its related and unrelated components. The implications of our findings are important because they explain earlier contradictory results on capital-structure determinants and offer an explanation of how the degree of product specialization/diversification and the direction of diversification (related or unrelated) translate into different corporate financial behaviours.

Authors


  •   La Rocca, M (external author)
  •   La Rocca, T (external author)
  •   Gerace, Dionigi (external author)
  •   Smark, Ciorstan J.

Publication Date


  • 2009

Citation


  • La Rocca, M., La Rocca, T., Gerace, D. & Smark, C. J. (2009). Effect of diversification on capital structure. Accounting & Finance, 49 (4), 799-826.

Scopus Eid


  • 2-s2.0-70450228406

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1770&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/729

Number Of Pages


  • 27

Start Page


  • 799

End Page


  • 826

Volume


  • 49

Issue


  • 4

Place Of Publication


  • http://www.wiley.com/bw/submit.asp?ref=0810-5391&site=1