This paper investigates the effect of a firm's organizational structure on its debt financing activities. Using corporate diversification strategy as an identification tool for organizational structure, we find that diversified firms have significantly lower loan rates than comparable focused...

Can the product diversification strategy of a firm provide a natural hedge against adverse economic conditions? We use a quasi-natural experiment to show that diversification attenuates the detrimental impact of unanticipated economic disruptions and enables diversified firms to invest more...

Using a large sample of stocks from 48 developed and emerging markets, we show that the benefits of diversification persist during the global financial crisis, the coronavirus pandemic, and other hard times, demonstrating their countercyclicality. This result suggests that the benefits of...