• DocumentCode
    2417748
  • Title

    A Study on the Reciprocal Relationship between Strategic Resource, Diversification Strategy and Capital Structure

  • Author

    Xizhen, Zhang

  • Author_Institution
    Sch. of Bus., Central South Univ., Changsha, China
  • fYear
    2010
  • fDate
    7-9 May 2010
  • Firstpage
    3597
  • Lastpage
    3602
  • Abstract
    Based on the panel data of 762 listed companies in China from 2003-2006, this paper analyzed the relationship between a firm´s strategic resource, diversification strategies and its capital structure by establishing a simultaneous equation model. Our empirical results show that strategic resource and diversification strategies significantly affect capital structure. In turn, capital structure affects the investment on strategic resource and the choice of diversification strategies. Capital structure and strategic resource, diversification strategies are reciprocally interrelated.
  • Keywords
    investment; China; capital structure; diversification strategy; firm strategic resource; investment; simultaneous equation model; Analytical models; Companies; Equations; Manufacturing; Mathematical model; Strontium; asset specificity; capital structure; diversification strategy; strategic resource;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    E-Business and E-Government (ICEE), 2010 International Conference on
  • Conference_Location
    Guangzhou
  • Print_ISBN
    978-0-7695-3997-3
  • Type

    conf

  • DOI
    10.1109/ICEE.2010.904
  • Filename
    5591741