Does corporate ownership structure affect its strategy towards diversification?

Strategic Management Journal

Volumn 20, Issue 11, 1999, Pages 1063-1069

  Amihud, Yakov ^a   Lev, Baruch ^a  

^a NEW YORK UNIVERSITY   (United States)

Author keywords

Agency theory; Corporate ownership structure; Diversification

Indexed keywords

EID: 0000956580     PISSN: 01432095     EISSN: None     Source Type: Journal    
DOI: 10.1002/(SICI)1097-0266(199911)20:11<1063::AID-SMJ69>3.0.CO;2-S     Document Type: Article

References (28)

1. Agrawal, A. and G. N. Mandelker (1987). 'Managerial incentives and corporate investment and financing decisions', Journal of Finance, 42, pp. 823-837.
2. Amihud, Y. and B. Lev (1981). 'Risk reduction as a managerial motive for conglomerate mergers', Bell Journal of Economics, 12, pp. 605-617.
3. Amihud, Y., J. Y. Kamin and J. Ronen (1983). '"Managerialism", "ownerism" and risk', Journal of Banking and Finance, 7, pp. 189-196.
4. Amihud, Y., P. Dodd and M. Weinstein (1986). 'Conglomerate mergers, managerial motives and stockholder wealth', Journal of Banking and Finance, 10, pp. 401-410.
5. Amihud, Y., B. Lev and N. G. Travlos (1990). 'Corporate control and the choice of investment financing; The case of corporate acquisition', Journal of Finance, 45, pp. 603-616.
6. Barnea, A. and D. E. Logue (1973). 'Stock-market based measure of corporate diversification', Journal of Industrial Economics, pp. 51-60.
7. Berger, P. G. and E. Ofek (1995). 'Diversification's effect on firm value', Journal of Financial Economics, 37, pp. 39-65.
8. Berger, P. G. and E. Ofek (1996). 'Bustup takeovers of value-destroying diversified firms', Journal of Finance, 51, pp. 1175-1200.
9. Berger, P. G. and E. Ofek (1997). 'Causes and effects of corporate refocusing programs', working paper, New York University, Stern School of Business.
10. Boudreaux, K. J. (1973). 'Managerialism and risk-return performance', Southern Economic Journal, pp. 366-372.
11. Byrd, J. W. and K. H. Hickman (1992). 'Do outside directors monitor managers?', Journal of Financial Economics, 32, pp. 195-221.
12. DeMarzo, P. M. and D. Duffie (1995). 'Corporate incentives for hedging and hedge accounting', Review of Financial Studies, 8, pp. 743-771.
13. Denis, D. J., D. K. Denis and A. Sarin (1997). 'Agency problems, equity ownership, and corporate diversification', Journal of Finance, 52, pp. 135-160.
14. Jensen, M. C. and W. H. Meckling (1976). 'Theory of the firm: Managerial behavior, agency costs, and ownership structure', Journal of Financial Economics, 3, pp. 305-360.
15. John, K. and E. Ofek (1995). 'Asset sale and increase in focus', Journal of Financial Economics, 37, pp. 105-126.
16. Kang, D. L. (1998). 'The internal control of organizations: How large-block ownership by insiders leads to increases firm performance', working Paper, Harvard Business School.
17. Lane, P. J., A. A. Cannella and M. H. Lubatkin (1998). 'Agency problems as antecedents to unrelated diversification: Amihud and Lev reconsidered', Strategic Management Journal, 19(6), pp. 555-578.
18. Lev, B. and S. Kunitzky (1974). 'On the association between smoothing measures and the risk of common stocks', The Accounting Review, pp. 259-270.
19. Lin, K. and H. Servaes (1997). 'International evidence on the value of corporate diversification', working paper, University of North Carolina, Chapel Hill.
20. Lloyd, W. P., J. H. Hand and N. K. Modani (1987). 'The effect of the degree of ownership control on firm diversification, market value and merger activity', Journal of Business Research, 15, pp. 303-312.
21. May, D. O. (1995). 'Do managerial motives influence firm risk reduction strategies?', Journal of Finance, 50, pp. 1291-1308.
22. Morck, R., A. Shleifer and R. W. Vishny (1990). 'Do managerial objectives drive bad acquisitions?', Journal of Finance, 45, pp. 31-48.
23. Morck, R. and B. Yeung (1998), 'Why firms diversify: Internationalization vs. agency behavior', working paper, University of Alberta.
24. Palmer, J. P. (1973). 'The profit performance effect on the separation of ownership from control in large U.S. industrial corporations', Bell Journal of Economics, 4, pp. 293-303.
25. Rumelt, R. P. (1974). Strategy, Structure and Economic Performance. Harvard Business School, Division of Research, Boston, MA.
26. Saunders, A., E. Strock and N. G. Travlos (1990). 'Ownership structure, deregulation, and bank risk taking', Journal of Finance, 45, pp. 643-654.
27. Servaes, H. (1996). 'The value of diversification during the conglomerate merger wave', Journal of Finance, 51, pp. 1201-1225.
28. Warfield, T. D., J J. Wild and K. L. Wild (1995). 'Managerial ownership, accounting choices, and informativeness of earnings', Journal of Accounting and Economics, 20, pp. 61-91.