Do institutional shareholders police management?
Article Abstract:
The 1980s saw an increase in the number of corporate takeovers, indicating its efficiency as a regulating mechanism. Studies from 1988 reveal institutions to be among the largest shareholders in US corporations, giving them higher inducement to oversee management teams than smaller shareholders due to their larger stakes in the companies. They enable the institution to influence management and are proof that institutions have bypassed laws which restricts shareholdings to 5%. The intensity of institutional ownership differs across companies, and those with dominant shareholders are inclined to use takeovers as a regulatory method.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1997
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Broken sticks- why mergers may fail to garner market share
Article Abstract:
The universal distribution law governing market shares is analyzed. As companies merge, their market shares unify as the market shares of the newly formed company. These new shares persist indefinitely under specific market conditions. However, random events will affect them as they adjust to the distribution law. Company officials must consider this law very well because it provides a basis for determining the distributive power of market shares.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1992
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Redeployment of corporate resources: a study of acquisition strategies in the US defense industries, 1978-1996
Article Abstract:
Acquisitions help organizations to integrate surplus resources with new resources to meet demand in other markets. The results of the study on the acquisition strategies in US defense industries (1978-1996) are presented to describe the choice between the two acquisition strategies to perform multiple tasks of an organization.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2004
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