An Empirical Study of the Effects of Unrelated Diversification on Investment Decisions: A Financing Constraint Perspective

摘要：

Based on a sample of listed manufacturing companies in China, this paper studies the effects of unrelated diversification strategy on investment decisions from a financing constraint perspective. We draw conclusions that sample companies investment decisions are significantly sensitive to the net cash flow generated in the business activities, manifesting a tendency ofinsufficient investment; moderately unrelated diversification can alleviate occurrence of this problem; and that when a company has an inproportionate number of business units, it will face a more intensified financing constraint, and its investment decisions are more sensitive to its cash flow.

关键词： Unrelated diversification Investment decisions Financing constraint

作者: Zhou Jie Zhang Shiyun

作者单位: Business School of Nankai University, Tianjin P.R.China, 300071

会议类型: 国际会议

会议名称: 第六届管理学国际会议(Proceedings of ICM2007 the 6th International on Management)

会议地点: 武汉

会议语种:英文

页码: 1367-1373

在线出版日期: 2007-08-03（万方平台首次上网日期，不代表论文的发表时间）