IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v16y1995i3p221-239.html
   My bibliography  Save this article

Size and relatedness of units sold: An agency theory and resource‐based perspective

Author

Listed:
  • Donald D. Bergh

Abstract

This study tests the effects of ownership concentration, outside director equity holdings, and corporate strategy on, and the Performance implications of, the size and relatedness of units sold by parent firms. The study is based on a model that integrates agency and resource‐based theories, and a sample of sell‐offs by 112 Fortune 500 firms. Ownership concentration is found to be associated positively with the sale of unrelated and small units. This relationship is strengthened when outside director equity is high. In addition, the effects of corporate strategy types on the characteristics of units sold depend on ownership concentration and outside director equity. Finally, post'sell‐off performance of the parent firm is associated negatively with the relatedness of the unit sold. These results suggest that the type of unit sold depends on the type of economic benefit sought by the parent firm.

Suggested Citation

  • Donald D. Bergh, 1995. "Size and relatedness of units sold: An agency theory and resource‐based perspective," Strategic Management Journal, Wiley Blackwell, vol. 16(3), pages 221-239.
    • Handle: RePEc:bla:stratm:v:16:y:1995:i:3:p:221-239
    DOI: 10.1002/smj.4250160306
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.4250160306
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.4250160306?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:16:y:1995:i:3:p:221-239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.