{"id":"https://openalex.org/W2000688188","doi":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","title":"A Theory of Corporate Scope and Financial Structure","display_name":"A Theory of Corporate Scope and Financial Structure","publication_year":1996,"publication_date":"1996-06-01","ids":{"openalex":"https://openalex.org/W2000688188","doi":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","mag":"2000688188"},"language":"en","primary_location":{"id":"doi:10.1111/j.1540-6261.1996.tb02699.x","doi":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5017357356","display_name":"David Daokui Li","orcid":"https://orcid.org/0000-0002-6401-4263","observed_orcids":["https://orcid.org/0000-0002-6401-4263","https://orcid.org/0000-0002-7684-2023"]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"DAVID D. LI","raw_affiliation_strings":[],"raw_orcid":null,"affiliations":[]},{"author_position":"last","author":{"id":null,"display_name":"SHAN LI","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I27837315","display_name":"University of Michigan","ror":"https://ror.org/00jmfr291","country_code":"US","type":"education","lineage":["https://openalex.org/I27837315"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"SHAN LI","raw_affiliation_strings":["D. D. Li is from the University of Michigan. S. Li is from Goldman Sachs & Co. We are grateful for the guidance of Oliver Hart and David Scharfstein. We also thank Andrew Alford, Patrick Bolton, Chyi-Mei Chen, Judy Chevalier, Ludwig Chinearini, Drew Fudenberg, Peter Klibanoff, John Moore, Walter Novaes, Klaus Schmidt, Jeremy Stein, Chris Snyder, Lakshmi Shyam-Sunder, Jean Tirole, and Jean-Luc Vila for helpful comments and discussions. We are also grateful for comments and suggestions by the editor, Rene\u0301 Stulz, and an anonymous referee","D. D. Li is from the University of Michigan. S. Li is from Goldman Sachs & Co. We are grateful for the guidance of Oliver Hart and David Scharfstein. We also thank Andrew Alford, Patrick Bolton, Chyi-Mei Chen, Judy Chevalier, Ludwig Chinearini, Drew Fudenberg, Peter Klibanoff, John Moore, Walter Novaes, Klaus Schmidt, Jeremy Stein, Chris Snyder, Lakshmi Shyam-Sunder, Jean Tirole, and Jean-Luc Vila for helpful comments and discussions. We are also grateful for comments and suggestions by the editor, Ren\u00e9 Stulz, and an anonymous referee"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"D. D. Li is from the University of Michigan. S. Li is from Goldman Sachs & Co. We are grateful for the guidance of Oliver Hart and David Scharfstein. We also thank Andrew Alford, Patrick Bolton, Chyi-Mei Chen, Judy Chevalier, Ludwig Chinearini, Drew Fudenberg, Peter Klibanoff, John Moore, Walter Novaes, Klaus Schmidt, Jeremy Stein, Chris Snyder, Lakshmi Shyam-Sunder, Jean Tirole, and Jean-Luc Vila for helpful comments and discussions. We are also grateful for comments and suggestions by the editor, Rene\u0301 Stulz, and an anonymous referee","institution_ids":["https://openalex.org/I27837315"]},{"raw_affiliation_string":"D. D. Li is from the University of Michigan. S. Li is from Goldman Sachs & Co. We are grateful for the guidance of Oliver Hart and David Scharfstein. We also thank Andrew Alford, Patrick Bolton, Chyi-Mei Chen, Judy Chevalier, Ludwig Chinearini, Drew Fudenberg, Peter Klibanoff, John Moore, Walter Novaes, Klaus Schmidt, Jeremy Stein, Chris Snyder, Lakshmi Shyam-Sunder, Jean Tirole, and Jean-Luc Vila for helpful comments and discussions. We are also grateful for comments and suggestions by the editor, Ren\u00e9 Stulz, and an anonymous referee","institution_ids":["https://openalex.org/I27837315"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":{"value":4430,"currency":"USD","value_usd":4430},"apc_paid":null,"fwci":11.5852,"has_fulltext":false,"cited_by_count":98,"citation_normalized_percentile":{"value":0.97601246,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":88,"max":99},"biblio":{"volume":"51","issue":"2","first_page":"691","last_page":"691"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9994999766349792,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9994999766349792,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12123","display_name":"Financial Analysis and Corporate Governance","score":0.00019999999494757503,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11043","display_name":"Merger and Competition Analysis","score":0.0,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/financial-structure","display_name":"financial structure","score":0.8970000147819519},{"id":"https://openalex.org/keywords/corporate-governance","display_name":"corporate governance","score":0.5680000185966492},{"id":"https://openalex.org/keywords/managerial-self-interest","display_name":"managerial self-interest","score":0.8949999809265137},{"id":"https://openalex.org/keywords/cash-flow-distribution","display_name":"cash flow distribution","score":0.703000009059906},{"id":"https://openalex.org/keywords/investment-decisions","display_name":"investment decision-making","score":0.9649999737739563},{"id":"https://openalex.org/keywords/conglomerate","display_name":"conglomerate","score":0.9539999961853027},{"id":"https://openalex.org/keywords/keiretsu","display_name":"keiretsu","score":0.9330000281333923},{"id":"https://openalex.org/keywords/japanese-business-groups","display_name":"Japanese business groups","score":0.4440000057220459},{"id":"https://openalex.org/keywords/optimal-capital-structure","display_name":"optimal capital structure","score":0.5400000214576721}],"concepts":[{"id":"https://openalex.org/C2778012447","wikidata":"https://www.wikidata.org/wiki/Q1034415","display_name":"Scope (computer science)","level":2,"score":0.898542046546936},{"id":"https://openalex.org/C176311302","wikidata":"https://www.wikidata.org/wiki/Q590428","display_name":"Keiretsu","level":2,"score":0.8518306612968445},{"id":"https://openalex.org/C2778348171","wikidata":"https://www.wikidata.org/wiki/Q167037","display_name":"Corporation","level":2,"score":0.6306302547454834},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.548652708530426},{"id":"https://openalex.org/C163428354","wikidata":"https://www.wikidata.org/wiki/Q1047513","display_name":"Cash flow","level":2,"score":0.5321444869041443},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.4627853035926819},{"id":"https://openalex.org/C149933338","wikidata":"https://www.wikidata.org/wiki/Q950816","display_name":"Capital structure","level":3,"score":0.4456169605255127},{"id":"https://openalex.org/C28719098","wikidata":"https://www.wikidata.org/wiki/Q44946","display_name":"Point (geometry)","level":2,"score":0.44147852063179016},{"id":"https://openalex.org/C27548731","wikidata":"https://www.wikidata.org/wiki/Q88272","display_name":"Investment (military)","level":3,"score":0.430908203125},{"id":"https://openalex.org/C78173224","wikidata":"https://www.wikidata.org/wiki/Q1853178","display_name":"Theory of the firm","level":2,"score":0.41083014011383057},{"id":"https://openalex.org/C40700","wikidata":"https://www.wikidata.org/wiki/Q1411783","display_name":"Industrial organization","level":1,"score":0.4072192311286926},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.32821035385131836},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.21040689945220947},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.09147712588310242},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0},{"id":"https://openalex.org/C2524010","wikidata":"https://www.wikidata.org/wiki/Q8087","display_name":"Geometry","level":1,"score":0.0},{"id":"https://openalex.org/C33923547","wikidata":"https://www.wikidata.org/wiki/Q395","display_name":"Mathematics","level":0,"score":0.0},{"id":"https://openalex.org/C199360897","wikidata":"https://www.wikidata.org/wiki/Q9143","display_name":"Programming language","level":1,"score":0.0},{"id":"https://openalex.org/C94625758","wikidata":"https://www.wikidata.org/wiki/Q7163","display_name":"Politics","level":2,"score":0.0}],"mesh":[],"locations_count":3,"locations":[{"id":"doi:10.1111/j.1540-6261.1996.tb02699.x","doi":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1996.tb02699.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"doi:10.2307/2329376","doi":"https://doi.org/10.2307/2329376","is_oa":false,"landing_page_url":"https://doi.org/10.2307/2329376","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"pmh:oai:RePEc:bla:jfinan:v:51:y:1996:i:2:p:691-709","doi":null,"is_oa":false,"landing_page_url":"http://links.jstor.org/sici?sici=0022-1082%28199606%2951%3A2%3C691%3AATOCSA%3E2.0.CO%3B2-M&origin=repec","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":37,"referenced_works":["https://openalex.org/W169327172","https://openalex.org/W1503687797","https://openalex.org/W1533007440","https://openalex.org/W1562614713","https://openalex.org/W1587222246","https://openalex.org/W1597154983","https://openalex.org/W2000578291","https://openalex.org/W2009236937","https://openalex.org/W2018474480","https://openalex.org/W2022983130","https://openalex.org/W2047816753","https://openalex.org/W2075498665","https://openalex.org/W2076607959","https://openalex.org/W2098628243","https://openalex.org/W2108491286","https://openalex.org/W2117455041","https://openalex.org/W2120024454","https://openalex.org/W2122529435","https://openalex.org/W2126265434","https://openalex.org/W2129123189","https://openalex.org/W2131921554","https://openalex.org/W2149088624","https://openalex.org/W2160860931","https://openalex.org/W2165887182","https://openalex.org/W2312693619","https://openalex.org/W2330048845","https://openalex.org/W2341795385","https://openalex.org/W2476668443","https://openalex.org/W2797335181","https://openalex.org/W2889617079","https://openalex.org/W2892187631","https://openalex.org/W3016265253","https://openalex.org/W3021203231","https://openalex.org/W3121131820","https://openalex.org/W3124284666","https://openalex.org/W3125496211","https://openalex.org/W4251000184"],"related_works":["https://openalex.org/W4252539563","https://openalex.org/W4235378630","https://openalex.org/W2264077636","https://openalex.org/W2283381698","https://openalex.org/W582307607","https://openalex.org/W3122142529","https://openalex.org/W2042947154","https://openalex.org/W3011154680","https://openalex.org/W7096507155","https://openalex.org/W1587222246"],"abstract_inverted_index":{"ABSTRACT":[0],"We":[1],"simultaneously":[2],"address":[3],"three":[4],"basic":[5],"issues":[6],"regarding":[7],"the":[8,10,15,20,38,49,52,62,69,80,83,86,91,94],"corporation:":[9],"optimal":[11,16],"scope":[12],"of":[13,44,51,85,93],"operation,":[14],"financial":[17,30],"structure,":[18],"and":[19],"relationship":[21],"between":[22],"these":[23],"two.":[24],"The":[25,42],"starting":[26],"point":[27],"is":[28],"that":[29],"structure":[31],"serves":[32],"as":[33],"a":[34],"bonding":[35,46],"device":[36],"on":[37,48,61],"managers'":[39],"self\u2010interest":[40],"behavior.":[41],"effectiveness":[43],"this":[45],"depends":[47,60],"distribution":[50],"firm's":[53,63,70],"future":[54],"cash":[55],"flow,":[56],"which":[57],"in":[58],"turn":[59],"scope.":[64,76],"Our":[65],"theory":[66,81],"also":[67],"links":[68],"investment":[71],"decisions":[72],"to":[73],"its":[74],"operation":[75],"As":[77],"empirical":[78],"implications,":[79],"reconciles":[82],"failure":[84],"1960s":[87],"U.S.":[88],"conglomerates":[89],"with":[90],"success":[92],"Japanese":[95],"Keiretsu.":[96]},"counts_by_year":[{"year":2025,"cited_by_count":2},{"year":2024,"cited_by_count":6},{"year":2023,"cited_by_count":2},{"year":2022,"cited_by_count":1},{"year":2021,"cited_by_count":1},{"year":2020,"cited_by_count":4},{"year":2019,"cited_by_count":2},{"year":2018,"cited_by_count":2},{"year":2017,"cited_by_count":7},{"year":2016,"cited_by_count":1},{"year":2015,"cited_by_count":1},{"year":2014,"cited_by_count":2},{"year":2013,"cited_by_count":3},{"year":2012,"cited_by_count":9}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2016-06-24T00:00:00"}
