Empirical evidence on the link between financial structure and the firm value is examined. Event studies show the stock price response to securities with an equity component is negative. But this negative signal has to be balanced. Another event study shows that investment motives are not...

The question of the influence of ownership structure on corporate diversification strategy incites debate. Past research has led to controversial results whether it is based on agency theory, strategic approach or stewardship theory. We propose new empirical evidence by applying this question to...