DIVERSIFICATION STRATEGY, CAPITAL STRUCTURE, AND THE ASIAN FINANCIAL CRISIS (1997-1998): EVIDENCE FROM SINGAPORE FIRMS

• 成果类型: Article
• 署名作者: Lim, Elizabeth Ngah-Kiing; Das, Shobha S.; Das, Amit
• 署名单位: University of Connecticut; Nanyang Technological University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.752
• 发表日期: 2009
• 页码: 577-594
• 关键词: Agency theory; CONTINGENCY THEORY; DIVERSIFICATION STRATEGY; Debt financing; Asian financial crisis; environment

摘要

We use agency, theory to predict the influence of related and unrelated product diversification on a firm's level of debt financing. Further, we argue that the link between diversification and capital structure is moderated by the environment in which firms operate. Using SAS PROC MIXED, we fit a mixed-effects model to our unique six-year longitudinal dataset (1995-2000) of 245 publicly listed Singapore firms. Our data spans the period of the Asian Financial Crisis (1997-1998). We find that firms pursuing unrelated product diversification take on less debt financing in stable environments, but more debt financing in dynamic environments. Using longitudinal structural equation modeling, we find a reciprocal relationship between a firm's product diversification strategy and its debt financing level. Copyright (C) 2009 John Wiley & Sons, Ltd.