{"product_id":"the-effects-of-diversification-strategies-on-capital-structure-von-andreea-apostu","title":"The Effects of Diversification Strategies on Capital Structure","description":"\u003cp\u003eThe role of diversification strategies in financial  choices has received little attention in previous  empirical financial studies. The aim of this paper is to study the effect of corporate diversification  strategies on firm capital structure using a panel  data analysis for a sample of 232 European firms  during the period 2004-2007. Theoretical and  empirical studies suggest that corporate leverage is  positively related to diversification across product  lines but negatively related to geographic  diversification. Some studies show that these diversification strategies are complementary in  generating debt usage. This paper estimates two  alternative models employed by previous empirical  work in the study of capital structure determinants:  static trade-off model and a dynamic target adjustment model. After controlling for firm size, profitability, growth, assets tangibility  and operating risk, the study finds that product and geographical diversification do not have a  significant influence on leverage.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783844322286\"\u003e\u003ch3\u003eAn Empirical Study on European Companies\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783844322286","offer_id":39470143733853,"sku":"9783844322286","price":49.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/4ac504dc-a310-453f-9671-fff926a539c2.jpg?v=1757742294","url":"https:\/\/shop.autorenwelt.de\/products\/the-effects-of-diversification-strategies-on-capital-structure-von-andreea-apostu","provider":"Autorenwelt Shop","version":"1.0","type":"link"}