Does Diversification Create Value in the Presence of External Financing Constraints? Evidence from the 2007-2009 Financial Crisis

By Venkat Kuppuswamy, Belén Villalonga. Management Sciences, 2016

333 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/29fefda5d4988cbb23b0cff707d2a3c7aa8f695f

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Citations in the corpus

Some Borrowers Are More Equal than Others: Bank Funding Shocks and Credit Reallocation* (2019, result): “These papers suggest that the diversification of bank assets seemingly does not guarantee to produce superior performance and/or greater safety for banks, a finding consistent with papers documenting the existence of a diversification discount in the market value of financial conglomerates (See, e.g”
The Global Financial Crisis, Family Control, and Dividend Policy: The Global Financial Crisis, Family Control, and Dividend Policy (2016, unknown): “More broadly, our evidence contributes to the literature on the relation between family control and dividend policy by considering a cross-country sample, thereby adding to the debate on the extent to which family control serves the family’s interests to the detriment of outside shareholders, as wel”
How Valuable Is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis (2020, unknown): “Evidence by Matvos and Seru (2014) and Kuppuswamy and Villalonga (2016) supports the view that conglomerates had some advantages in coping with the stressed financial markets of the GFC.”
Internal Capital Markets in Times of Crisis: The Benefit of Group Affiliation* (2019, unknown): “…use increases and firms with access to large internal capital markets are more likely to survive the crisis.7 This interpretation is consistent with Kuppuswamy and Villalonga (2015), who find that USA diversified conglomerates became more valuable than otherwise-similar, single-segment firms…”
Corporate Governance and Firm-Specific Stock Price Crashes (2016, unknown): “…however, find that the coefficient on OPAQUE t-1 * CRISIS_POST is negative and statistically significant, which indicates that the relation between opacity and crash risk is 11 Following recent literature [Kuppuswamy and Villalonga (2010)], we define the financial crisis period from 2007 to 2009.”