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Internal Capital Market Controls and Financial Performance in Multidivisional Firms

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  • Hill, Charles W L

Abstract

It is proposed that, within the population of M-form firms, the control systems necessary to realize economic benefits from interrelationships between subunits o f a firm are incompatible with the systems necessary to realize benef its from an M-form type internal capital market. This hypothesis is t ested on 156 large U.K. firms. Questionnaire data are used to classif y the firms according to their internal control characteristics. The findings provide tentative support for the hypothesis. Copyright 1988 by Blackwell Publishing Ltd.

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  • Hill, Charles W L, 1988. "Internal Capital Market Controls and Financial Performance in Multidivisional Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 67-83, September.
  • Handle: RePEc:bla:jindec:v:37:y:1988:i:1:p:67-83
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    21. Argyres, Nicholas S., 1995. "Technology strategy, governance structure and interdivisional coordination," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 337-358, December.
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