Corporate diversification and credit constraints: Real effects across the business cycle

• 成果类型: Article
• 署名作者: Dimitrov, Valentin; Tice, Sheri
• 署名单位: Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Tulane University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhj028
• 发表日期: 2006
• 页码: 1465
• 关键词: internal capital-markets; monetary-policy; inefficient investment; CONGLOMERATE MERGER; stock returns; Firm value; transmission; inventories; RESOURCES; discount

摘要

We study whether differences in access to credit cause focused firms to perform differently from diversified firms in the product market. Prior work has identified binding credit constraints for bank-dependent firms during recessions. We assess whether corporate diversification alleviates these constraints. We find that during recessions sales growth rates drop more for bank-dependent focused firms than for rival segments of bank-dependent diversified firms. We also find that during recessions inventory growth rates drop more for bank-dependent focused firms than for bank-dependent diversified firms even after we control for contemporaneous sales growth. Consistent with a credit constraint explanation, we find no difference in the sensitivities to recessions of bank-independent focused and bank-independent diversified firms.