Linking corporate strategy to capital structure: Diversification strategy, type and source of financing

• 成果类型: Article
• 署名作者: Kochhar, R; Hitt, MA
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School; Texas A&M University System; Texas A&M University College Station
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/(SICI)1097-0266(199806)19:6<601::AID-SMJ961>3.0.CO;2-M
• 发表日期: 1998
• 页码: 601-610
• 关键词: capital structure; public/private financing; related/unrelated diversification; mode of entry; simultaneous equation modeling

摘要

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. Additionally, firms diversifying through acquisitions are more likely to Else public sources af financing and those emphasizing internal development of new businesses depend primarily on private sources of financing. Using simultaneous equation estimation, we found a reciprocal relationship between a firm's financial strategy and its corporate diversification strategy. Mode and nature of diversification are also reciprocally interrelated. (C) 1998 John Wiley & Sons, Ltd.