Leverage and investment in diversified firms

• 成果类型: Article
• 署名作者: Ahn, S; Denis, DJ; Denis, DK
• 署名单位: Purdue University System; Purdue University; Concordia University - Canada
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.03.002
• 发表日期: 2006
• 页码: 317-337
• 关键词: Leverage; INVESTMENT; diversification

摘要

Within diversified firms, the negative impact of leverage on investment is significantly greater for high q than for low q segments and significantly greater for non-core than for core segments. This differs substantially from focused firms and is consistent with the view that diversified firms allocate a disproportionate share of their debt service burden to their higher q and non-core segments. We also find that, among low-growth firms, the positive relation between leverage and firm value is significantly weaker in diversified firms than in focused firms. We conclude that the disciplinary benefits of debt are partially offset by the additional managerial discretion in allocating debt service that is provided by the diversified organizational structure. (c) 2005 Elsevier B.V. All rights reserved.