{"id":"https://openalex.org/W2183443447","doi":null,"title":"The Value of Corporate Diversification: A Debt Market Perspective *","display_name":"The Value of Corporate Diversification: A Debt Market Perspective *","publication_year":2010,"publication_date":"2010-01-01","ids":{"openalex":"https://openalex.org/W2183443447","mag":"2183443447"},"language":"en","primary_location":{"id":"mag:2183443447","doi":null,"is_oa":false,"landing_page_url":"http://www.insead.edu/facultyresearch/areas/accounting/events/documents/FUV-30July2010SubmissionRFS.pdf","pdf_url":null,"source":null,"license":null,"license_id":null,"version":null,"is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":null},"volume":null,"type":"article","indexed_in":[],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":null,"display_name":"Francesca Franco","orcid":"https://orcid.org/0000-0003-2036-7128","observed_orcids":["https://orcid.org/0000-0003-2036-7128"]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Francesca Franco","raw_affiliation_strings":[],"raw_orcid":"https://orcid.org/0000-0003-2036-7128","affiliations":[]},{"author_position":"middle","author":{"id":"https://openalex.org/A5037354505","display_name":"Oktay Urcan","orcid":"https://orcid.org/0000-0003-1915-0802","observed_orcids":["https://orcid.org/0000-0003-1915-0802"]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Oktay Urcan","raw_affiliation_strings":[],"raw_orcid":"https://orcid.org/0000-0003-1915-0802","affiliations":[]},{"author_position":"last","author":{"id":"https://openalex.org/A5017797042","display_name":"Florin P. Vasvari","orcid":"https://orcid.org/0000-0002-6727-2612","observed_orcids":["https://orcid.org/0000-0002-6727-2612"]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Florin P. Vasvari","raw_affiliation_strings":[],"raw_orcid":"https://orcid.org/0000-0002-6727-2612","affiliations":[]}],"institutions":[],"countries_distinct_count":0,"institutions_distinct_count":0,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":null,"apc_paid":null,"fwci":5.5977,"has_fulltext":false,"cited_by_count":14,"citation_normalized_percentile":{"value":0.96362558,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":88,"max":97},"biblio":{"volume":null,"issue":null,"first_page":null,"last_page":null},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.76419997215271,"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":0.76419997215271,"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/T11496","display_name":"Credit Risk and Financial Regulations","score":0.21899999678134918,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11653","display_name":"Financial Distress and Bankruptcy Prediction","score":0.0034000000450760126,"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"}}],"keywords":[{"id":"https://openalex.org/keywords/business-diversification","display_name":"business diversification","score":0.9940000176429749},{"id":"https://openalex.org/keywords/credit-risk","display_name":"credit risk","score":0.925000011920929},{"id":"https://openalex.org/keywords/bond-yields","display_name":"bond yields","score":0.7960000038146973},{"id":"https://openalex.org/keywords/cost-of-debt","display_name":"cost of debt","score":0.7649999856948853},{"id":"https://openalex.org/keywords/agency-theory","display_name":"agency theory","score":0.9549999833106995},{"id":"https://openalex.org/keywords/unrelated-diversification","display_name":"unrelated diversification","score":0.7699999809265137},{"id":"https://openalex.org/keywords/syndicated-loans","display_name":"syndicated loans","score":0.9559999704360962},{"id":"https://openalex.org/keywords/loan-spreads","display_name":"loan spreads","score":0.5709999799728394}],"concepts":[{"id":"https://openalex.org/C180916674","wikidata":"https://www.wikidata.org/wiki/Q3711935","display_name":"Diversification (marketing strategy)","level":2,"score":0.8506373763084412},{"id":"https://openalex.org/C163428354","wikidata":"https://www.wikidata.org/wiki/Q1047513","display_name":"Cash flow","level":2,"score":0.6190613508224487},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.5586007237434387},{"id":"https://openalex.org/C2777764128","wikidata":"https://www.wikidata.org/wiki/Q189539","display_name":"Loan","level":2,"score":0.5512734055519104},{"id":"https://openalex.org/C36673458","wikidata":"https://www.wikidata.org/wiki/Q392896","display_name":"Agency cost","level":4,"score":0.5478127598762512},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.5341585874557495},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5122625231742859},{"id":"https://openalex.org/C23032112","wikidata":"https://www.wikidata.org/wiki/Q1344727","display_name":"Enterprise value","level":2,"score":0.46570923924446106},{"id":"https://openalex.org/C2780334105","wikidata":"https://www.wikidata.org/wiki/Q9297784","display_name":"Free cash flow","level":3,"score":0.43999478220939636},{"id":"https://openalex.org/C69738904","wikidata":"https://www.wikidata.org/wiki/Q11693","display_name":"Bond","level":2,"score":0.4337238073348999},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.43280118703842163},{"id":"https://openalex.org/C106159729","wikidata":"https://www.wikidata.org/wiki/Q2294553","display_name":"Financial economics","level":1,"score":0.37042176723480225},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.34823593497276306},{"id":"https://openalex.org/C39389867","wikidata":"https://www.wikidata.org/wiki/Q380767","display_name":"Corporate governance","level":2,"score":0.08174058794975281},{"id":"https://openalex.org/C120757647","wikidata":"https://www.wikidata.org/wiki/Q381136","display_name":"Shareholder","level":3,"score":0.08074548840522766},{"id":"https://openalex.org/C162853370","wikidata":"https://www.wikidata.org/wiki/Q39809","display_name":"Marketing","level":1,"score":0.0}],"mesh":[],"locations_count":1,"locations":[{"id":"mag:2183443447","doi":null,"is_oa":false,"landing_page_url":"http://www.insead.edu/facultyresearch/areas/accounting/events/documents/FUV-30July2010SubmissionRFS.pdf","pdf_url":null,"source":null,"license":null,"license_id":null,"version":null,"is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":null}],"best_oa_location":null,"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":85,"referenced_works":["https://openalex.org/W187592620","https://openalex.org/W1531341052","https://openalex.org/W1602768366","https://openalex.org/W1964112161","https://openalex.org/W1974669536","https://openalex.org/W1998068604","https://openalex.org/W1998297452","https://openalex.org/W2006513242","https://openalex.org/W2018474480","https://openalex.org/W2018849787","https://openalex.org/W2020848494","https://openalex.org/W2021292353","https://openalex.org/W2021791306","https://openalex.org/W2030298911","https://openalex.org/W2039077859","https://openalex.org/W2042991469","https://openalex.org/W2048801439","https://openalex.org/W2049324641","https://openalex.org/W2051469129","https://openalex.org/W2054231132","https://openalex.org/W2054467010","https://openalex.org/W2057785092","https://openalex.org/W2058141370","https://openalex.org/W2070414465","https://openalex.org/W2072272947","https://openalex.org/W2098053263","https://openalex.org/W2104134967","https://openalex.org/W2105973145","https://openalex.org/W2111065252","https://openalex.org/W2113874619","https://openalex.org/W2114035433","https://openalex.org/W2115871647","https://openalex.org/W2123249113","https://openalex.org/W2124532504","https://openalex.org/W2126265434","https://openalex.org/W2128282719","https://openalex.org/W2129123189","https://openalex.org/W2139272920","https://openalex.org/W2149170345","https://openalex.org/W2152796988","https://openalex.org/W2153706302","https://openalex.org/W2156072507","https://openalex.org/W2158454654","https://openalex.org/W2164067187","https://openalex.org/W2164145704","https://openalex.org/W2164277021","https://openalex.org/W2170907645","https://openalex.org/W2189094526","https://openalex.org/W2333932433","https://openalex.org/W2602594608","https://openalex.org/W2741800057","https://openalex.org/W2890635869","https://openalex.org/W2917156736","https://openalex.org/W3021203231","https://openalex.org/W3021265406","https://openalex.org/W3023311111","https://openalex.org/W3121131820","https://openalex.org/W3121727765","https://openalex.org/W3121797308","https://openalex.org/W3121877964","https://openalex.org/W3121974956","https://openalex.org/W3122100560","https://openalex.org/W3122151187","https://openalex.org/W3122632517","https://openalex.org/W3122639747","https://openalex.org/W3122647754","https://openalex.org/W3122720032","https://openalex.org/W3122819740","https://openalex.org/W3122904176","https://openalex.org/W3122914324","https://openalex.org/W3122982027","https://openalex.org/W3122987172","https://openalex.org/W3123160767","https://openalex.org/W3123169855","https://openalex.org/W3123854255","https://openalex.org/W3124257397","https://openalex.org/W3124536211","https://openalex.org/W3124599649","https://openalex.org/W3124620510","https://openalex.org/W3125062060","https://openalex.org/W3125090645","https://openalex.org/W3125362379","https://openalex.org/W3125613904","https://openalex.org/W3125748343","https://openalex.org/W3125975775"],"related_works":["https://openalex.org/W3122525391","https://openalex.org/W2901071268","https://openalex.org/W3201165841","https://openalex.org/W1552742881","https://openalex.org/W2768741260","https://openalex.org/W7137545127","https://openalex.org/W3207956206","https://openalex.org/W1875033854","https://openalex.org/W2282219306","https://openalex.org/W2789163186"],"abstract_inverted_index":{"Theoretical":[0],"arguments":[1],"suggest":[2],"that":[3,16,44,103,136,154],"a":[4,23,80,129,171],"firm\u2019s":[5,25],"diversification":[6,71,84,108,125,159],"strategy":[7],"affects":[8],"its":[9],"credit":[10,36,56],"risk.":[11,37,57],"The":[12],"co-insurance":[13,144],"theory":[14,42],"argues":[15],"imperfectly":[17],"correlated":[18],"cash":[19,132],"flow":[20,133],"streams":[21],"of":[22,30,68,75,83,158,163,173],"diversified":[24,49],"segments":[26],"reduce":[27],"the":[28,35,40,55,66,73,104,137,143,155,161,190],"variability":[29],"aggregated":[31],"earnings,":[32],"thus":[33],"lowering":[34],"In":[38],"addition,":[39],"agency":[41,45,178],"suggests":[43],"conflicts":[46],"specific":[47],"to":[48],"firms":[50,96,117],"can":[51],"increase":[52],"or":[53],"decrease":[54],"We":[58],"empirically":[59],"test":[60],"these":[61],"theoretical":[62],"predictions":[63],"by":[64,151,188],"investigating":[65],"effect":[67,157],"corporate":[69],"industrial":[70,121],"on":[72,160],"cost":[74,162],"public":[76,164],"debt":[77,165],"financing.":[78],"For":[79],"broad":[81],"set":[82],"measures":[85],"and":[86,109,123],"empirical":[87],"specifications,":[88],"we":[89,101],"document":[90],"significantly":[91],"lower":[92,130],"bond":[93,110],"yields":[94,111],"when":[95,116,124],"diversify":[97,118],"their":[98],"operations.":[99],"Further,":[100],"find":[102],"negative":[105,156],"relationship":[106],"between":[107],"is":[112,126,148,167],"much":[113],"more":[114,140],"pronounced":[115],"across":[119],"unrelated":[120],"segments,":[122],"associated":[127],"with":[128,142],"inter-segment":[131],"correlation,":[134],"indicating":[135],"results":[138],"are":[139,180],"consistent":[141],"argument.":[145],"This":[146],"inference":[147],"further":[149],"strengthened":[150],"our":[152],"finding":[153],"financing":[166],"also":[168],"present":[169],"in":[170],"sample":[172],"syndicated":[174],"bank":[175],"loans":[176],"where":[177],"problems":[179],"addressed":[181],"through":[182],"strong":[183],"monitoring":[184],"features":[185],"rather":[186],"than":[187],"adjusting":[189],"loan":[191],"spread.":[192]},"counts_by_year":[{"year":2021,"cited_by_count":1},{"year":2018,"cited_by_count":1},{"year":2017,"cited_by_count":2},{"year":2016,"cited_by_count":2},{"year":2015,"cited_by_count":2},{"year":2014,"cited_by_count":1},{"year":2013,"cited_by_count":3},{"year":2012,"cited_by_count":2}],"updated_date":"2026-10-12T09:40:04.860316","created_date":"2016-06-24T00:00:00"}
