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

Dany Aoun and Almas Heshmati ()

Applied Financial Economics, 2008, vol. 18, issue 12, 1021-1032

Abstract: 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.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09603100701335457 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:18:y:2008:i:12:p:1021-1032

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/09603100701335457

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().