Asset Specificity and Corporate Governance: An Empirical Test

• Published in: Managerial finance Vol. 22; no. 2; pp. 16 - 28
• Main Authors: Cushing, Woodrow W, McCarty, Daniel E
• Format: Journal Article
• Language: English
• Published: Patrington MCB UP Ltd 01.02.1996; Emerald Group Publishing Limited
• Subjects: Accounts receivable; Advertising; Assets; Bankruptcy; Corporate governance; Economic models; Equity; Financial leverage; Financial management; Hypotheses; Liquidation; R&D; Research & development; Research & development expenditures; Studies; Time series; Variables; United States > US

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...