Do Conglomerate Firms Allocate Resources Inefficiently Across Industries? Theory and Evidence

By Vojislav Maksimovic, Gordon M. Phillips. 2002

777 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/75c0b7f24391e778725c769b5c5e115bfab198bc

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Citations in the corpus

Controlling for endogeneity with instrumental variables in strategic management research (2008, background): “Such unobservables are, for instance, exceptional management or specific operating procedures (Maksimovic and Phillips, 2002; Matsusaka, 2001; see also Shaver, 1998) (for a traditional example in the econometrics literature, see Angrist and Krueger, 1991).”
Influence and Inefficiency in the Internal Capital Market: Theory and Evidence (2009, neutral): “The concept of influence activities [Milgrom (1988), Milgrom and Roberts (1990) and Meyer, Milgrom and Roberts (1992)] in this paper take the form of signal-jamming, in which players ‘jam’ or distort signals that others receive [Fudenberg and Tirole (1986) and Holmstrom (1982)].”
To Merge, Sell, or Liquidate? Socioemotional Wealth, Family Control, and the Choice of Business Exit (2019, neutral): “Moreover, selling a firm outright enables its owners to create more value in terms of financial returns (Decker & Mellewigt, 2007; Maksimovic & Phillips, 2001, 2002; Wennberg et al., 2010).”
Productivity, Restructuring, And The Gains From Takeovers (2013, neutral): “2.1 Sources of efficiency gains Previous studies have consistently shown that takeovers improve target firm’s plant-level productivity (Lichtenberg, 1992; Maksimovic and Phillips, 2001, 2002; and Maksimovic, Phillips, and Prabhala, 2011).”
Is Corporate Diversification Beneficial in Emerging Markets (2002, background): “…and Hubbard and Palia (1999) for evidence that diversifying acquisitions were beneficial to bidding firms during the 1960s, and Hyland (1999), Maksimovic and Phillips (2002), Campa and Kedia (2000), Graham, Lemmon, and Wolf (2000), and Villalonga (2000) for arguments and evidence that the…”
Divestitures and the liquidity of the market for corporate assets (2002, methodology): “Following the model of Maksimovic and Phillips ( 2002 ) in which industry shocks reduce the comparative advantage of small segments proportionately more than the comparative advantage of large segments within a firm , one could also interpret industry cash flow as a proxy for industry shocks .”
Optimal Diversification: Reconciling Theory and Evidence (2004, methodology): “Closest to our model is the work of Maksimovic and Phillips (2002) who first formalize the idea that diversification decisions can be understood as the optimal response of firms to industry or sectoral shocks.”
Private and Public Merger Waves (2012, neutral): “Maksimovic and Phillips (2001, 2002) and Yang (2008) argue that demand 2The rm has option to postpone an IPO to a future date.”
Opportunity Costs and Non-Scale Free Capabilities: Profit Maximization, Corporate Scope, and Profit Margins (2010, result): “…change in demand conditions in the absence of diminishing return to production scale, in contrast to recent work in corporate finance (cf. Gomes and Livdan, 2004; Maksimovic and Phillips, 2002) in which diminishing returns to production scale acts as an underlying driver for diversification.”
Multiple directorships and corporate diversification (2008, neutral): “Alternative explanation Maksimovic and Phillips (2002) argue that diversification may be consistent with”
Investment and Competition (2006, neutral): “For instance, Maksimovic and Phillips (2002) and Whited (2005) show that productivity and financial constraints differentially affect the investment patterns of stand-alone firms and segments within conglomerates.”