Diversified corporations competing in industries characterized by uncertain and rapidly changing structures can enhance their competitiveness by increasing their level of strategic flexibility, i.e., their ability to reconfigure divisional relationships to exploit shifting industry-level complementarities. The value of this kind of strategic flexibility can be understood using a real options fr...

Received: 1 March 2005 Revised: 22 November 2007 Accepted: 11 December 2007 Online publication date: 27 March 2008 Abstract We examine the product diversification of a multinational firm within each of its host-country markets. Based on a sample of 12,992 foreign subsidiaries of Japanese multinational firms, we find that higher levels of within-country product diversity led to higher subsidiary...

This study examines the impact of hierarchical complexity on corporate opaqueness and how this relationship varies under moderating effect diversification. We hypothesise that increases in firms’ are related to greater between firm outside investors capital market. Using a sample U.S. firms spanning 5 years from 2012 2016, we find statistically economically significant, positive opaqueness. The...

We show real effects of financial reporting transparency on the domestic banking sector. Transparent financial reporting facilitates non-financial firms’ access to arm’s-length financing from external capital markets and foreign banks. This diminishes non-financial firms’ reliance on domestic banks for their financial services. Domestic banks thus face increased competition from the alternate p...