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Title: | Financially constrained firms : the impact of managerial optimism and diversification on firms’ excess value : the case of Greece |
Authors: | Maditinos, Dimitrios Tsinani, Alexandra Sevic, Zeljko Stankeviciene, Jelena |
Keywords: | Corporations -- Finance Corporations -- Greece Corporations -- Accounting Investments -- Greece Investments -- Management Corporations -- Taxation Excess profits tax -- Greece |
Issue Date: | 2019 |
Publisher: | University of Piraeus. International Strategic Management Association |
Citation: | Maditinos, D., Tsinani, A., Sevic, Z., & Stankeviciene, J. (2019). Financially constrained firms : the impact of managerial optimism and diversification on firms’ excess value : the case of Greece. European Research Studies Journal, 22(1), 3-15. |
Abstract: | Diversification as an underlying factor of financial constraints can create several costs. Diversified firms have the tendency to over-invest in lines of business which display poor investment opportunities. Diversification indeed reduces value. This loss in value is found mainly for firms of all sizes having managers with a higher level of optimism. The link between optimism and corporate investment is more pronounced in financially constraint firms. When the wedge between the internal and external cost of funds increases, a firm is more financially constrained. Analysing a sample of listed companies in Greece it is found that the higher the managerial optimism, the lower the excess value of a firm. |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/40403 |
ISSN: | 11082976 |
Appears in Collections: | European Research Studies Journal, Volume 22, Issue 1 |
Files in This Item:
File | Description | Size | Format | |
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Financially Constrained Firms_ The Impact of Managerial Optimism and Diversification on Firms’ Excess Value_ The Case of Greece.pdf | 312.69 kB | Adobe PDF | View/Open |
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