Tong, Zhenxu - In: Journal of Corporate Finance 17 (2011) 3, pp. 741-758
This paper studies the effect of firm diversification on the value of corporate cash holdings. We develop two … firms than in single-segment firms, and that firm diversification is associated with a lower value of cash in both … financially unconstrained and constrained firms. We find that firm diversification has a negative (zero) impact on the value of …