Are EU leading firms returning to core business? Evidence on refocusing and relatedness in a period of market integration

Review of Industrial Organization

Volumn 27, Issue 2, 2005, Pages 125-145

  Rondi, Laura ^a,c   Vannoni, Davide ^b,c  

^a POLITECNICO DI TORINO   (Italy)

^b UNIVERSITY OF TURIN   (Italy)

^c Ceris CNR   (Italy)

Author keywords

European integration; Firm diversification; Return to core

Indexed keywords

MANUFACTURING; MARKET; OPERATIONS TECHNOLOGY;

EASTERN HEMISPHERE; EURASIA; EUROPE; EUROPEAN UNION; WORLD;

EID: 26944436975     PISSN: 0889938X     EISSN: 15737160     Source Type: Journal    
DOI: 10.1007/s11151-005-8322-y     Document Type: Article

References (41)

1. Baghat, R.E., A. Shleifer, and R.W. Vishny (1990) 'Hostile Take-overs in the 1980s: The Return to the Core Specialisation', Brookings Papers on Economic Activity, 1-84.
2. Baldwin, J. R., D. Beckstead, and R. Caves (2001) 'Changes in Diversification of Canadian Manufacturing Firms (1973-1997): A Move to Specialization', Analytical Studies Branch-Research Paper Series, No. 179, December.
3. Baldwin J. R. Beckstead D. Gellatly G. Peters A. 2000 'Patterns of Corporate Diversification in Canada: An Empirical Analysis' Analytical Studies Branch-Research Paper Series, No. 150, June.
4. P.G. Berger and E. Ofek 1995 'Diversification's Effect on Firm Value' Journal of Financial Economics 37 39-66 10.1016/0304-405X(94)00798-6
5. D. Bernheim and M. Whinston 1990 'Multimarket Contact and Collusive Behaviour' RAND Journal of Economics 21 1-26
6. A. Bhide 1990 'Reversing Corporate Diversification' Journal of Applied Corporate Finance 3 70-81 10.1111/j.1745-6622.1990.tb00201.x
7. P. Buigues and A. Jacquemin 1989 'Strategies of Firms and Structural Environments in the Large Internal Market' Journal of Common Market Studies 28 53-67
8. R. Caves 1996 Multinational Enterprise and Economic Analysis Cambridge University Press Cambridge
9. S.W. Davies and P.A. Geroski 1997 'Changes in Concentration, Turbulence, and the Dynamics of Market Shares' The Review of Economics and Statistics 79 382-391
10. S.W. Davies and C. Morris 1995 'A New Index of Vertical Integration: Some Estimates for UK Manufacturing' International Journal of Industrial Organization 13 151-177 10.1016/0167-7187(94)00459-F
11. S.W. Davies L. Rondi and A. Sembenelli 2001a 'Are Multinationality and Diversification Complementary or Substitute Strategies? An Empirical Analysis on European Leading Firms' International Journal of Industrial Organization 19 1315-1346 10.1016/S0167-7187(00)00063-1
12. S.W. Davies L. Rondi and A. Sembenelli 2001b 'European Integration and the Changing Structure of EU Manufacturing, 1987-1993' Industrial and Corporate Change 10 37-75 10.1093/icc/10.1.37
13. S.W. Davies B.R. Lyons et al. 1996 Industrial Organisation in the European Union. Structure, Strategy, and the Competitive Mechanism Clarendon Press Oxford
14. A. Dierx F. Ilzkovitz and K. Sekkat 2004 European Integration and the functioning of European Markets Edward Elgar Cheltenham
15. Edwards, C. D. (1955) 'Conglomerate Bigness as a Source of Power' in Business Concentration and Price Policy, NBER conference report, Princeton University Press.
16. P. Egger and M. Pfaffermayr 2004 'Concentration and Multinationality in European Manufacturing: What's the Effect on Productivity?' Empirica 31 325-332 10.1007/s10663-004-1419-y
17. European Commission (1988) 'The Economics of 1992. An Assessment of the Potential Economic Effects of Completing the Internal Market of the European Community' European Economy, 35, March.
18. European Commission (1990) 'The Impact of the Internal Market by Industrial Sector: The Challenge for the Member States' European Economy, Special Edition.
19. European Commission (2002) 'European Integration and the Functioning of Product Markets', European Economy, Special Report, No. 2.
20. J.P. Fan and L.H.P. Lang 2000 'The Measurement of Relatedness: An Application to Corporate Diversification' Journal of Business 73 629-660 10.1086/209657
21. M.C. Jensen 1986 'Agency Costs of Free Cash Flow, Corporate Finance and Take-overs' American Economic Review 76 323-329
22. P. Krugman and A.J. Venables 1996 'Integration, Specialisation, and Adjustment' European Economic Review 40 959-967 10.1016/ 0014-2921(95)00104-2
23. O.A. Lamont and C. Polk 2001 'The Diversification Discount: Cash Flows Versus Returns' Journal of Finance 56 1693-1721 10.1111/0022-1082.00386
24. L.H.P. Lang and R. Stulz 1994 'Tobin's q, Corporate Diversification and Firm Performance' Journal of Political Economy 102 1248-1280 10.1086/ 261970
25. F.R. Lichtenberg 1992 'Industrial De-diversification and its Consequences for Productivity' Journal of Economic Behaviour and Organization 16 427-438 10.1016/0167-2681(92)90019-8
26. C. Markides 1995 Diversification, Refocusing, and Economic Performance MIT Press Cambridge, MA
27. Marris, R. (1964) The Economic Theory of Managerial Capitalism, New York Free Press.
28. C. Montgomery 1994 'Corporate Diversification' Journal of Economic Perspectives 8 163-178
29. C. Montgomery B. Wernerfelt 1988 'Diversification, Ricardian Rents, and Tobin's q' RAND Journal of Economics 19 623-632
30. D.C. Mueller 1972 'A Life Cycle Theory of the Firm' Journal of Industrial Economics 20 199-219
31. Penrose, E. (1959) The Theory of the Growth of the Firm, Basil Blackwell.
32. J.J. Rotemberg and G. Saloner 1994 'Benefits of Narrow Business Strategies' American Economic Review 84 1330-1349
33. Rondi, L., and D. Vannoni (2003) 'De-diversification and Refocusing of EU Leaders. Testing for Different Core Definitions', 'G. Prato' Working Paper Series number 68, University of Torino.
34. P.H. Rubin 1973 'The Expansion of Firms' Journal of Political Economy 81 936-949 10.1086/260089
35. R.P. Rumelt 1982 'Diversification Strategy and Profitability' Strategic Management Journal 3 359-369
36. J. Scott 1993 Purposive Diversification and Economic Performance Cambridge University Press Cambridge
37. A. Schoar 2002 'Effects on Corporate Diversification on Productivity' Journal of Finance 57 2379-2403 10.1111/1540-6261.00500
38. D. Teece 1982 'Towards an Economic Theory of the Multiproduct Firm' Journal of Economic Behaviour and Organisation 3 39-63 10.1016/ 0167-2681(82)90003-8
39. D. Teece R. Rumelt G. Dosi and S. Winter 1994 'Understanding Corporate Coherence.Theory and Evidence' Journal of Economic Behaviour and Organisation 23 1-30 10.1016/0167-2681(94)90094-9
40. D. Vannoni 2004 'Causes and Effects of Multimarket Activity. From Theory to Empirical Analysis'. Managerial and Decision Economics 25 163-174
41. Veugelers R. (2004) 'Industrial Concentration, Market Integration and Efficiency in the European Union'. In Dierx A., Ilzkovitz F F., Sekkat K. eds. European Integration and the Functioning of European Markets. Edward Elgar.