an avenue to avoid the monitoring associated with issuing external capital. We argue that firms operating inefficient …

The research domain that attempts to study the relationship between diversification and performance has not yet reached … definitive and interpretable findings, and recent studies challenge the existence of a "diversification discount" and explain it … between diversification and performance is here not confirmed. …

on financing decisions in China contradicts the predictions of both the trade-off theory and the pecking order theory …

of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts … and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit … less profitable, and poor financial integration, regulation and inefficient judicial systems increase monitoring costs …