Corporate restructuring: governance and control limits of the internal capital market

Article Abstract:

Corporate restructuring that is sparked by the threat of a takeover provides evidence that corporate governance limits of large diversified (M-form) firms may exist. This paper proposes that poor corporate monitoring, which is due to atomistic ownership patterns and inadequate board of director governance, an emphasis on incentive compensation, and free cash flows, may lead to higher levels of diversification. If diversification results in loss of strategic control and poor performance, the threat of a takeover is likely to be related to the incidence of corporate restructuring. Corporate restructuring, in turn, is likely to (a) result in the correction of inadequate governance patterns, (b) create a more focused diversification strategy, (c) increase strategic control, (d) reduce reliance on bureaucratic control through reduced corporate staff, and (e) increase the performance of the firm and shareholder wealth. (Reprinted by permission of the publisher.)

Corporate governance, Capital market, Capital markets, Corporations, Control

---

Towards reconciliation of market performance measures to strategic management research

Article Abstract:

The fields of strategic management research and market-based performance research study the same corporate phenomena, but reach different conclusions; for example, management studies indicate that corporate acquisitions improve the performance of the acquiring firm, whereas finance studies that are market-based conclude that acquisitions either do not affect performance or affect it only minimally. Certain research methodologies used by finance researchers, such as the capital assets pricing model and market models, are investigated and adapted for use by management research. The adaptations are evolved based on studies of corporate acquisitions. The adaptation attempted leads to a conclusion that finance research may incompletely measure corporate phenomena and events, due to its research selection of: time frames, samples, statistical analyses, and benchmarks for normal returns.

Financial research

---

Toward a product-proliferation theory of entry barriers

Article Abstract:

Product proliferation is the introduction of products that fill product space in a way that bars potential entrants and sustains the products' profitable growth. A product-level theory of market entry is proposed that integrates Industrial-organization economics theory, density-dependent and resource-partitioning theories and brand-leveraging theories.

United States, Product management, Market entry

Similar abstracts:

• Abstracts: A comparative revenue analysis of hotel yield management heuristics. An empirical investigation of the Malcolm Baldrige National Quality Award Causal Model
• Abstracts: Corporate allies learn how to take the misery out of marriage. Half the miracle has already happened
• Abstracts: Corporate community involvement in the San Francisco Bay area. Selling American medical equipment in Japan
• Abstracts: How to create an electronic spreadsheet budget. Using your PC to project capital funds. Are you wasting time with your micro?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.