Asset Specificity and Corporate Governance: An Empirical Test
This study develops a model for estimating an index measure of asset specificity based on the liquidation value of corporate firms and the proportional distribution of their pre-liquidation assets. A statistically significant positive relationship was found to exist between the estimated specificity...
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Published in | Managerial finance Vol. 22; no. 2; pp. 16 - 28 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Patrington
MCB UP Ltd
01.02.1996
Emerald Group Publishing Limited |
Subjects | |
Online Access | Get full text |
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Summary: | This study develops a model for estimating an index measure of asset specificity based on the liquidation value of corporate firms and the proportional distribution of their pre-liquidation assets. A statistically significant positive relationship was found to exist between the estimated specificity index and financial leverage supporting the theoretical prediction. Additional evidence was found that firms with higher variability in sales, lower probabilities of failure, higher valued non-debt tax shields and higher levels of financial slack use less financial leverage. |
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Bibliography: | filenameID:0090220202 original-pdf:0090220202.pdf ark:/67375/4W2-3JCP9Q9M-T href:eb018546.pdf istex:6642E0E4B89FFED19D0A092BDD3851A1B9F8A921 ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0307-4358 1758-7743 |
DOI: | 10.1108/eb018546 |