2016 Fiscal Year Final Research Report
Empirical analysis of the relationship between management strategy and corporate finance
| Project/Area Number |
25380490
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (C)
|
| Allocation Type | Multi-year Fund |
|---|
| Section | 一般 |
|---|
| Research Field |
Management
|
|---|
| Research Institution | Ritsumeikan University |
|---|
Principal Investigator |
|
|---|
| Project Period (FY) |
2013-04-01 – 2017-03-31
|
| Keywords | 経営戦略 / 製品多角化 / 選択と集中 / 資本構成 |
|---|
| Outline of Final Research Achievements |
We examine the combined effect of diversification and core competence on the capital structure of publicly traded manufacturing firms in OECD member countries. We find that taking the combined effect of the degree of diversification and the level of core competence into consideration, the interaction between leverage and the diversification strategy is no longer uniformly linear relationship. Specifically, on pursuing a core competence strategy, the larger the degree of diversification, the lower their debt ratios become in comparison with leverages, which are determined by their diversification levels.
Moreover, we examine the combined effect of predation risk and firms’ market power on cash holdings. We find that the higher the firm’s market power, the weaker the above interplay becomes. Moreover, we find that even when firms’investments are decreased at the industry level, firms with larger cash holdings seek to mitigate predation risk by increasing own investments.
|
| Free Research Field |
コーポレート・ファイナンス
|
