Disagreements and Intra-Industry Spinoffs
AbstractA growing empirical literature on spinoff formation has begun to reveal some striking regularities about which firms are most likely to spawn spinoffs, when they are most likely to spawn them, and the relationship between the quality of the parent firm and its spinoffs. Deeper investigations into the causes of spinoffs have highlighted the importance of strategic disagreements in driving some employees to resign and found a new venture. Motivated by this literature, we construct a new theory of spinoff formation driven by strategic disagree-ments, and explore how well it explains the emerging empirical regularities.
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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0907.
Length: 39 pages
Date of creation: Mar 2009
Date of revision:
Spinoffs; learning; strategic disagreement;
Other versions of this item:
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
- NEP-CSE-2009-03-28 (Economics of Strategic Management)
- NEP-ENT-2009-03-28 (Entrepreneurship)
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