Asset redeployment, acquisitions and corporate strategy in declining industries
Article Abstract:
A study was conducted to examine the function of acquisitions in transforming the scope of businesses in industries that are in decline. Particularly, this research compares the performance outcomes of diversification-oriented acquisitions and consolidation-oriented acquisitions in declining defense industries. Based on stock-based ex ante and operating ex post performance measures, findings revealed that consolidation-oriented acquisitions are more beneficial than diversification--oriented acquisitions in waning industries. Results suggest that assets of declining industries are more effectively reallocated via market dynamics than within the firm via the procurement of complementary assets.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
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Top management tenure, corporate ownership structure and the magnitude of golden parachutes
Article Abstract:
The effects of top management tenure, board composition, and corporate ownership structure on various characteristics of golden parachute size and coverage are examined. Data was collected from a sample of 89 Fortune 500 companies which had adopted golden parachute programs as of December 1985. Results indicate that golden parachute payments are higher when management is longer-tenured, and golden parachutes cover fewer executives when non-management-owned blocks of stock are concentrated and management stock ownership is low.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1989
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Corporate acquisition strategies and economic performance
Article Abstract:
A conceptual argument is examined that corporate acquisitions tied in market-product or technological terms promote higher value than unrelated acquisitions. Related acquisitions are shown to possess higher total dollar gains than unrelated acquisitions. Findings suggest that related target companies gain more from acquisition than unrelated target firms. Managerial implications are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1987
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