Big Time College Athletics is a fascinating phenomenon, one that presents the organizational scho... more Big Time College Athletics is a fascinating phenomenon, one that presents the organizational scholar with intriguing questions. On the one hand, as expressed in statements by university leaders, there is minimal congruence between BTCA and the mission of universities. On the other hand, BTCA continues to grow and, some might argue, thrive. Three panelists, Anju Seth, Jay Barney, and Tom Donaldson, each expert in different facets of governance, will address university governance as it relates to BTCA. Each panelist, along with our discussant, Mark Mizruchi, will address how insights found within BTCA are related to other organizational contexts. The seminal puzzles to be addressed in the symposium are to explain whether extant university governance has contributed to this "lack of congruence—yet thriving" paradox; how changes in governance might increase BTCA—university mission congruence; and, of greatest importance, what can be learned about governance by investigating BTCA.
The primary objective of this study is to extend the literature on corporate growth and diversifi... more The primary objective of this study is to extend the literature on corporate growth and diversification by examining the sources of value creation associated with different acquisition/diversification strategies. A distinction is made between two diversification strategies: related versus unrelated diversification. Firms are considered related when a common skill, resource, market or purpose applies to each. In an acquisition, value is said to be created when the economic value of the combined entity exceeds the sum of the values of the combining firms. While a number of conceptual arguments to explain why acquisitions create value have been proposed in the literature, these have been intractable to test empirically. In this research, a new approach to analyzing the sources of value creation is developed. We define three different sources of value creation, each requiring the implementation of a different strategic decision for exploitation of competitive advantage. Thus, in the combined entity, value is created as a result of new operating decisions, new financing decisions, or by the mere fact of combination alone. To provide empirical content to this approach, measures of the differential impact of the various sources of value creation are developed. The event study methodology from financial economics and multiple regression analysis are used to test the influence of different sources of value creation. In addition, measurement issues regarding the extent of value creation are explored and new measures developed, which are shown to more closely approximate the concept of value creation than others used earlier in the literature. The results indicate that value is created in both unrelated and related acquisitions: on average, there is an increase of around 11% of the initial value of the combined firm around the announcement date of the acquisition, which is statistically significant. Furthermore, it is seen that value creation in related acquisitions is primarily associated with changes in operating decisions, whereas value creation in unrelated acquisitions is primarily associated with changes in financing decisions. The data do not provide unequivocal support of the proposition that related acquisitions create more value than unrelated acquisitions.Ph.D.ManagementUniversity of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/161974/1/8821651.pd
This symposium intends to examine the recent and emerging changes in the macro institutions of fo... more This symposium intends to examine the recent and emerging changes in the macro institutions of four major emerging economies or economic regions and discuss their implications for corporate governance. The four economies or economic regions to be covered are China, India, Russia and Latin America, and the four presenters in this symposium will each focus on one of these economies or economic regions. Each presenter will raise and discuss the recent trends in the macro-institutional environment of the country or region covered, implications for the corporate governance, corporate responses to these initiatives, and potentially interesting research questions to explore. After the four presentations, the panelists will engage the audience in an interactive discussion, particularly with regard to the implications of these recent and emerging changes for research in international business and strategy as well as for managerial practice. Corporate Governance amid Deepening Economic and Legal Reforms in China Pr...
Previous studies on international competitive strategies identify a number of loosely defined str... more Previous studies on international competitive strategies identify a number of loosely defined strategy types and suggest that the choice among them is based on their relative productive efficiency (i.e. ability to exploit such factors as economies of scale, economies of scope, and location economies). Our analysis highlights the additional role of motivational efficiency. We propose that the proportion of available productive efficiency that is actually realized under each strategy depends on the motivational efficiency of the best possible incentive system for implementing the strategy. Our conceptual framework allows the identification of precise theoretical relationships for empirical measurement and testing.
This study investigates the determinants and consequences of the efficiency of resource allocatio... more This study investigates the determinants and consequences of the efficiency of resource allocation in multibusiness firms. We find that greater cognitive diversity among top and division managers is associated with decreased resource allocation efficiency. When diversity is greater top managers find it more difficult to verify the value benefits of resource allocation proposals and are more likely to be swayed by influence activities of divisional managers. However, performance based compensation incentives for divisional managers appear to counter this negative effect, and act to reduce the sensitivity of resource allocation efficiency to cognitive diversity. Lastly, there is strong evidence that higher resource allocation efficiency is related to higher stock market performance.
Big Time College Athletics is a fascinating phenomenon, one that presents the organizational scho... more Big Time College Athletics is a fascinating phenomenon, one that presents the organizational scholar with intriguing questions. On the one hand, as expressed in statements by university leaders, there is minimal congruence between BTCA and the mission of universities. On the other hand, BTCA continues to grow and, some might argue, thrive. Three panelists, Anju Seth, Jay Barney, and Tom Donaldson, each expert in different facets of governance, will address university governance as it relates to BTCA. Each panelist, along with our discussant, Mark Mizruchi, will address how insights found within BTCA are related to other organizational contexts. The seminal puzzles to be addressed in the symposium are to explain whether extant university governance has contributed to this "lack of congruence—yet thriving" paradox; how changes in governance might increase BTCA—university mission congruence; and, of greatest importance, what can be learned about governance by investigating BTCA.
The primary objective of this study is to extend the literature on corporate growth and diversifi... more The primary objective of this study is to extend the literature on corporate growth and diversification by examining the sources of value creation associated with different acquisition/diversification strategies. A distinction is made between two diversification strategies: related versus unrelated diversification. Firms are considered related when a common skill, resource, market or purpose applies to each. In an acquisition, value is said to be created when the economic value of the combined entity exceeds the sum of the values of the combining firms. While a number of conceptual arguments to explain why acquisitions create value have been proposed in the literature, these have been intractable to test empirically. In this research, a new approach to analyzing the sources of value creation is developed. We define three different sources of value creation, each requiring the implementation of a different strategic decision for exploitation of competitive advantage. Thus, in the combined entity, value is created as a result of new operating decisions, new financing decisions, or by the mere fact of combination alone. To provide empirical content to this approach, measures of the differential impact of the various sources of value creation are developed. The event study methodology from financial economics and multiple regression analysis are used to test the influence of different sources of value creation. In addition, measurement issues regarding the extent of value creation are explored and new measures developed, which are shown to more closely approximate the concept of value creation than others used earlier in the literature. The results indicate that value is created in both unrelated and related acquisitions: on average, there is an increase of around 11% of the initial value of the combined firm around the announcement date of the acquisition, which is statistically significant. Furthermore, it is seen that value creation in related acquisitions is primarily associated with changes in operating decisions, whereas value creation in unrelated acquisitions is primarily associated with changes in financing decisions. The data do not provide unequivocal support of the proposition that related acquisitions create more value than unrelated acquisitions.Ph.D.ManagementUniversity of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/161974/1/8821651.pd
This symposium intends to examine the recent and emerging changes in the macro institutions of fo... more This symposium intends to examine the recent and emerging changes in the macro institutions of four major emerging economies or economic regions and discuss their implications for corporate governance. The four economies or economic regions to be covered are China, India, Russia and Latin America, and the four presenters in this symposium will each focus on one of these economies or economic regions. Each presenter will raise and discuss the recent trends in the macro-institutional environment of the country or region covered, implications for the corporate governance, corporate responses to these initiatives, and potentially interesting research questions to explore. After the four presentations, the panelists will engage the audience in an interactive discussion, particularly with regard to the implications of these recent and emerging changes for research in international business and strategy as well as for managerial practice. Corporate Governance amid Deepening Economic and Legal Reforms in China Pr...
Previous studies on international competitive strategies identify a number of loosely defined str... more Previous studies on international competitive strategies identify a number of loosely defined strategy types and suggest that the choice among them is based on their relative productive efficiency (i.e. ability to exploit such factors as economies of scale, economies of scope, and location economies). Our analysis highlights the additional role of motivational efficiency. We propose that the proportion of available productive efficiency that is actually realized under each strategy depends on the motivational efficiency of the best possible incentive system for implementing the strategy. Our conceptual framework allows the identification of precise theoretical relationships for empirical measurement and testing.
This study investigates the determinants and consequences of the efficiency of resource allocatio... more This study investigates the determinants and consequences of the efficiency of resource allocation in multibusiness firms. We find that greater cognitive diversity among top and division managers is associated with decreased resource allocation efficiency. When diversity is greater top managers find it more difficult to verify the value benefits of resource allocation proposals and are more likely to be swayed by influence activities of divisional managers. However, performance based compensation incentives for divisional managers appear to counter this negative effect, and act to reduce the sensitivity of resource allocation efficiency to cognitive diversity. Lastly, there is strong evidence that higher resource allocation efficiency is related to higher stock market performance.
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