Empirical studies are yet to answer the basic question regarding why firms diversify and what affects this choice. The present study attempts to answer this question using data from British and German firms. The results show different effects of ownership concentration and financial variables on...

We investigate the impact of geographic diversification on the provision of credit during a financial bust. We find that during the Nicaraguan microlending crisis, lenders reduced overall credit provision but to a lesser extent to those geographic areas that contributed most to geographic...