Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2010
Abstract
Prior work on the performance consequences of corporate diversification has treated all powerful owners as seeking the same benefits from diversification (i.e, higher profit rather than growth) and therefore limiting value appropriation by other stakeholders such as employees and managers. In contrast, we distinguish between domestic "relational" owners and foreign "transactional" owners in Japanese corporations. Although transactional owners do indeed prioritize profitability when diversifying, relational owners primarily seek growth rather than profits from diversification. Furthermore, relational owners also allow managers and employees to appropriate more of the rents arising from diversification than do transactional owners.
Discipline
Corporate Finance | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
53
Issue
3
First Page
636
Last Page
654
ISSN
0001-4273
Identifier
10.5465/AMJ.2010.51469005
Publisher
Academy of Management
Citation
DAVID, Parthiban; O'Brien, Jonathan P.; YOSHIKAWA, Toru; and DELIOS, Andrew.
Do shareholders or stakeholders appropriate the rents from corporate diversification? The influence of ownership structure. (2010). Academy of Management Journal. 53, (3), 636-654.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2906
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/AMJ.2010.51469005