alternative diversification strategy during a downturn. These findings provide better information and suggestions for risk … management, specifically in portfolio diversification and international asset allocation benefits. Chinese stock market investors …

We establish that stock liquidity is conducive to less corporate diversification. Two potential channels are identified … liquidity on diversification is stronger among financially-constrained firms, since higher liquidity helps firms improve … external capital markets and thus reduces the need to broaden the internal capital markets through diversification. Moreover …