International diversification, capital structure and cost of capital: evidence from ICT firms listed at NASDAQ

• Autores: Dany Aoun, Almas Heshmati
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 18, Nº. 10-12, 2008, págs. 1021-1032
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • In this study, we intend to examine the information and communication technology (ICT) firms from a financial perspective. The relationship between capital structure and cost of capital (COC) is investigated in a simultaneous equation framework. On the one hand, we relate international diversification to the firm's capital structure, and on the other, we test their individual and collective inferences on the combined debt and equity COC. We expect a negative correlation between international diversification and higher total and long-term debt ratios, and a reduction in the overall COC.