Does corporate ownership structure affect its strategy towards diversification?

Authors
Amihud, Y Lev, B
Citation
Y. Amihud et B. Lev, Does corporate ownership structure affect its strategy towards diversification?, STRAT MANAG, 20(11), 1999, pp. 1063-1069
Citations number
28
Categorie Soggetti
Management
Journal title
STRATEGIC MANAGEMENT JOURNAL
ISSN journal
01432095 → ACNP
Volume
20
Issue
11
Year of publication
1999
Pages
1063 - 1069
Database
ISI
SICI code
0143-2095(199911)20:11<1063:DCOSAI>2.0.ZU;2-J
Abstract
We claim that there is a link between corporate control structure and manag ers' strategy towards unrelated mergers and risk diversification. Companies with greater ownership concentration are less diversified. Evidence also s hows that corporate diversification generally results in value lass while f ocussing is value increasing. This highlights the potentially detrimental e ffect of agency problems on corporate strategy. Copyright (C) 1999 John Wil ey & Sons, Ltd.