We articulate the agency theory view of managerial decision making and its implications for corporate diversification strategies. From agency theory, we generate testable predictions for the relation between equity ownership structure and diversification strategies and review the existing evidence o
โฆ LIBER โฆ
Ownership structure and corporate diversification strategies of Chinese business groups
โ Scribed by Zhao, Jun
- Book ID
- 121709261
- Publisher
- Emerald (MCB UP )
- Year
- 2010
- Tongue
- English
- Weight
- 98 KB
- Volume
- 33
- Category
- Article
- ISSN
- 2040-8269
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This study examines the relationship between corporate strategy and capital structure, specifically the diversfication and financing strategies of a firm. The results show that equity financing is preferred for related diversification and unrelated diversification is associated with debt financing.