Download or read book Diversification and Corporate Governance written by George W.J Hendrikse and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article addresses the impact of governance structure on diversification behavior. Hypotheses are developed regarding the differences in diversification strategy of cooperatives and stock listed companies. The analysis shows that stock listed companies are more diversified than cooperatives, related as well as unrelated.
Download or read book Corporate Governance and Corporate Behavior in Japan written by Masaharu Hanazaki and published by Springer. This book was released on 2016-07-28 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book carefully examines the effects of changes in the corporate governance structure on corporate behavior or company performance, using micro-data from listed companies in Japan. The author found that in Japan the introduction of stock options had neither a positive impact on profitability nor the negative side effects of promoting risk-taking behaviors. Furthermore, he found that corporate diversification and division of corporations showed negative impacts on profitability. The corporate governance structure of Japan has exhibited a large change from the second half of the 1990s to the present. There have been institutional reforms involving enterprise law, such as the introduction of stock options and the removal of the ban on holding companies. With respect to the ownership structure of a company, discernible trends are that the equity holdings of financial institutions and business corporations have fallen while the presence of foreign stockholders has risen. These trends are often pointed out as signs that the Japanese corporate governance structure has been approaching the American model and that this will energize Japanese firms. The author contradicts common academic theories, however, and concludes that the formation of the corporate governance which emphasizes the agency problem between shareholders and corporate managers is inadequate. He suggests that an institutional arrangement for a corporate governance system that values a variety of stakeholders' interests is greatly needed and concludes that perspectives on maximizing surplus values for various stakeholders and distributing the surpluses appropriately among the stakeholders will become increasingly important for the purpose of managing corporations.
Download or read book Is There an Association between Corporate Governance and Firm Diversification An Empirical Study with Brazilian Companies written by Wesley Mendes-Da-Silva and published by . This book was released on 2004 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The strategy adopted by a company can be understood as the result of mechanisms and practices of corporate governance. In turn, the performance of a firm depends directly on the decisions made by its administrators. However, managers can incorporate their own personal interests in strategic decisions, creating a level of corporate diversification, according to the operation of the corporate government. Thus, the objective of this study is to investigate, empirically, if the structure of governance is different between focused and diversified firms and, furthermore, if differences in corporate governance are associated with some loss of value for the firm from the diversification. This study consists of a multiple cross section extending from 1997 to 2001. Data from 176 companies with open capital listed on the Satilde;o Paulo Stock Exchange (Bovespa) were used, representing 14 industry segments. The results of the multivariable analysis reveal that the size of the board of directors (InTAMC) and the participation of the executives in the profit (profit sharing) of the company (PART) are positively associated with the diversification of the firm (HPROD). Moreover, the companies with private national capital (CNTR) appeared more diversified than those with government capital; however it is important to recognize that these associations were not constant for the entire length of the study period.
Download or read book The Impact of Corporate Governance on Business Diversification written by 林家齊 and published by . This book was released on 2005 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Corporation written by Dennis Mueller and published by Routledge. This book was released on 2020-04-15 with total page 261 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book reviews the theory of the firm and the large modern corporation. Examining the process of entrepreneurial capitalism in which firms come into existence, then managerial capitalism and the changing motives of management in corporations - The Corporation is a thorough and thoughtful account. Of interest to students and academics in
Download or read book Diversification and Corporate Governance written by George W. J. Hendrikse and published by . This book was released on 2002 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance Corporate Diversification and Ownership Structure written by Raffaele Stagliano and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this thesis is to examine how corporate diversification and ownership structure affect value creation for firms. In Chapter 2, we review the relevant theoretical models in the field of corporate finance. The chapter also summarizes the empirical results found regarding the relationship between corporate diversification, ownership concentration and the firm's value. In Chapter 3, we extend the analysis of corporate diversification and consider the effects of the interaction of both product and international diversification on a firm. Empirically, this chapter considers the impact of diversification decisions on the capital structure for a sample of Italian manufacturing firms. We find that the interaction of both international and product diversification has a negative impact on debt capacity. Finally, in Chapter 4, we empirically examine the impact of complex ownership structures on the risk choices of U.S. firms. Most previous studies on ownership structure focus on the differences between firms with at least one blockholder and widely held firms, without considering the potential effect that the existence of other blockholders might have on the financial variables. We find that the blockholders with intermediate holdings play a mitigating role in the conflicts of interest between the largest blockholder and the minority shareholders.
Download or read book The Relationship Between Corporate Diversification Corporate Governance and Corporate Social Performance in Indonesian Companies written by Dina Patrisia and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Firm Diversification written by Ronald C. Anderson and published by . This book was released on 1998 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We empirically investigate the relationship between corporate governance structure and diversification. Using a sample of 199 firms beginning in 1985 and following these firms through 1994, we examine 1) if governance structure is significantly different between focused and diversified firms; 2) if differences in corporate governance are associated with the decision to become more focused or diverse; and 3) if the previously documented value loss from diversification is associated with governance structure. We find that, relative to focused firms, diversified firms exhibit higher levels of pay and lower sensitivity of pay to firm performance, have more outsiders on the board, have similar sensitivity of CEO turnover to performance, and no economic difference in independent blockholdings. We find that firms that increase their level of diversification over the sample period have governance and performance characteristics remarkably similar to firms that retain their focus. Firms that decrease their level of diversification, however, have lower insider ownership but more equity-based compensation relative to focused firms. We find no evidence that governance characteristics explain the value loss associated with diversification. We do find, however, that the fraction of outside directors in a diversified firm is positively related to firm value. Collectively, our results suggest that diversified firms use alternative governance mechanisms as substitutes for low pay-for-performance sensitivity and CEO ownership. We conclude that agency costs do not provide a complete explanation for the magnitude and persistence of the diversification discount.
Download or read book Corporate Governance Shareholder Rights and Firm Diversification written by Pornsit Jiraporn and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Grounded in agency theory, this study investigates how the strength of shareholder rights influences the extent of firm diversification and the excess value attributable to diversification. The empirical evidence reveals that the strength of shareholder rights is inversely related to the probability to diversify. Furthermore, firms where shareholder rights are more suppressed by restrictive corporate governance suffer a deeper diversification discount. Specifically, we document a 1.1-1.4% decline in firm value for each additional governance provision imposed on shareholders. An explicit distinction is made between global and industrial diversification. Our results support agency theory as an explanation for the value reduction in diversified firms. The evidence in favor of agency theory appears to be more pronounced for industrial diversification than for global diversification.
Download or read book Corporate Governance and Diversification The Agency Theory written by 姬亭竹 and published by . This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Diversification Strategies and Corporate Governance in Trading Companies written by Geoffrey Jones and published by . This book was released on 1996 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Downscoping written by Robert E. Hoskisson and published by Oxford University Press. This book was released on 1994-09-01 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: Large, diversified firms face unique challenges as they compete worldwide, and corporate restructuring is one way multinationals strive for competitive advantage. Weighing the pros and cons of a variety of approaches to restructuring, Downscoping offers executives a clear, strategic path through the maze. The authors show that when a multinational conglomerate fails to compete effectively, too much diversification may be the culprit. Whether the result of weak corporate governance or poor corporate strategy, over-diversification can make managers, unfamiliar with some of the markets in which they compete, opt for safety over innovation. This risk-aversion and lack of long-range commitment to innovation lead inevitably to stagnation over the longer term. The answer is not downsizing--closing offices and laying off personnel--but downscoping: a strategic approach to restructuring. The options include incentive and compensation adjustments for executives, leveraged buy-outs and capital structure changes, focusing on core skills, diversifying internationally while focusing on businesses in which a firm has strong competencies, and buying and selling mature businesses where product development is not a great concern. Regardless of the approach, executives must exercise strategic leadership during and after restructuring, including providing strategic direction, exploiting core competencies, developing human capital, and sustaining the corporate culture. Based on systematic research rather than casual observation, Downscoping provides a strong description of restructuring alternatives and their resulting tradeoffs. Its specific guidelines for maintaining competitiveness will be essential reading for managers involved in corporate restructuring.
Download or read book Corporate Governance and Firm Performance written by Rejie George Pallathitta and published by . This book was released on 2005 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Diversification written by Kimberly C. Gleason and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we investigate the relation between corporate governance and returns to bidders and targets, using 1,640 observations of completed acquisitions from 1996 to 2003. We find that the cumulative abnormal returns for acquirers are significantly negative upon announcement of acquisitions for the full sample and for the related and diversifying sub-samples. However, we find that diversifying acquisitions, when conducted by firms with a higher percentage of outsiders on the board, improve returns. Furthermore, we separately examine high-tech and non high-tech firms to test the relation between board characteristics and announcement returns in different information asymmetry environments. We also find that diversifying acquirers with independent boards perform better than those with insider dominated boards and the results are especially pronounced for high-tech firms. Taken together, the results suggest that firms with better incentive alignment will be more likely to be perceived by the market as stronger performers in acquisitions. In sum, we find that corporate governance plays an important role in determining wealth creation for our sample of acquiring firms.
Download or read book Corporate Governance and Diversification Issues in Listed Gulf Commercial Banks written by Danielle Robert Asaad and published by . This book was released on 2006 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the corporate governance characteristics and diversification strategies of 41 listed commercial banks within the Gulf Cooperative Council (G CC). Corporate governance characteristics include the effect of combined expert ise from an international top four auditor and a local auditor, the size of the board of directors, and the presence of a government shareholder; while diversif ication strategies include international and activity-based diversification. Us ing Ordinary Least Squares Regressions, we find evidence of a positive and signi ficant relationship between the combined expertise provided by both internationa l and local auditors and operating performance, a negative and significant relat ionship between board size and the banks' operating performance; however, no eff ect is found between the presence of a government shareholder. Moreover, empiric al investigations indicate that both diversification strategies have a positive and significant effect on the operating performance. However, these statistical findings are based on the assumption that the decision to diversify is an exoge nous one. Controlling for the endogenous diversification decision, our Two-Stag e Least Squares Regressions confirm our results and show that a negative and sig nificant relationship exists between the presence of a government shareholder an d banks' operating performance. Together, these findings are consistent with pr ior research on corporate governance and diversification strategies. Overall, t he results give insight into the optimal corporate governance and diversificatio n strategies for listed Gulf commercial banks.
Download or read book Corporate Diversification and the Cost of Capital written by Rebecca N. Hann and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
