Size and relatedness of units sold: an agency theory and resource-based perspective

Article Abstract:

A study is conducted to examine whether a company's decision to sell a business unit is influenced by the unit's attributes. It focuses on the impact of the parent firm's ownership concentration, corporate strategy and outside director equity holdings on the size and relatedness of the business units to be divested. Results indicate a positive relationship between ownership concentration and the sale of small, unrelated business units. A high director equity strengthens this relationship even further. Findings also reveal that ownership concentration and outside director equity determine the impact of corporate strategy types on the attributes of units sold. Furthermore, a negative relationship is found between the performance of the parent company after the sell-off and the relatedness of the sold unit.

Mergers, acquisitions and divestments, Subsidiary corporations, Subsidiaries, Agency theory

---

Assessment and redirection of longitudinal analysis: demonstration with a study of the diversification and divestiture relationship

Article Abstract:

A study was conducted to examine how longitudinal analysis is applied in strategic management research. For this research, a content analysis of 203 longitudinal strategic management studies was undertaken. Findings revealed that majority of researchers have not tested and controlled for variations in the data assumptions involved in longitudinal analysis. It was also found that these researchers have not tested the stability and form of the empirical relations across time. Analyses of the diversification and divestiture relationships of 180 Fortune 500 companies from 1985 to 1988 demonstrated that differences in empirical results, theoretical development and practical applications can occur based on the performance of longitudinal analysis.

Methods, Longitudinal method, Management research, Longitudinal studies

---

Predicting divestiture of unrelated acquisitions: an integrative model of ex ante conditions

Article Abstract:

Many business acquisitions are unsuccessful and this can result in financial losses, damage to the reputation of the acquiring firm and its managers, executive dismissals, divestiture and devaluations by the financial community. Given the riskiness and costs of buying a firm, managers would benefit from knowing when acquisitions have excellent chances of being successful. A study therefore sought to identify when unrelated acquisitions have the highest probability of divestiture to help describe some of the disparities between divested and retained unrelated acquisitions. The findings suggest that the ultimate fate of the acquired firm is influenced by the conditions and factors that existed at the time it was purchased.

Acquisitions & Mergers Analysis, Business Methods, Business planning, Financial analysis, Diversification in industry, Industrial diversification

Similar abstracts:

• Abstracts: The persuasiveness of audit evidence: the case of accounting policy decisions. An examination of the descriptive validity of the belief-adjustment model and alternative attitudes to evidence in auditing
• Abstracts: Windolph seeks great editorial to surround agency's creative. Peachey takes direct path in result delivery
• Abstracts: Self-selection and analyst coverage. The relative informativeness of analysts' stock recommendations and earnings forecast revisions
• Abstracts: The use of performance information in external reporting: an empirical study of UK executive agencies. A study of the use of targets in the planning documents of executive agencies
• Abstracts: The Likert scale revisited: an alternate version. The influence of positive and negative wording and issue involvement on responses to Likert scales in marketing research

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