Subramaniam, Venkat; Tang, Tony T.; Yue, Heng; Zhou, Xin - In: Journal of Corporate Finance 17 (2011) 3, pp. 759-773
We analyze whether the organizational structure of firms (i.e., whether a firm is diversified or focused) affects their cash holdings. Using Compustat firm level and segment-level data, we find that diversified firms hold significantly less cash than their focused counterparts. Our results are...