Arping, Stefan; Lóránth, Gyöngyi - In: The Journal of Business 79 (2006) 6, pp. 3175-3208
This article develops a model of the interplay between corporate leverage and product differentiation strategy. Leverage improves managerial discipline, but it can also raise customer concerns about a vendor's long-term viability. We argue that customer concerns about firm viability will be...