We show that, on average, product market competition acts as a disciplining force constraining managers from misreporting accounting information. Further, in a quasi-natural experiment that uses shifts in import tariffs to identify intensification of competition, difference-in-difference...

Research in corporate governance has predominantly focused on the moral hazard problem and governance mechanisms that mitigate it. In this conceptual paper, we instead focus on adverse selection as an alternative agency problem, emphasizing well-intentioned managers making strategic choices they...

Purpose of this Paper: This "masterclass" article explains how modern value investing analysis can guide corporate strategists and corporate development departments. It shows how executives can use some of the key insights from the recently published book by Martin J. Whitman and Fernando Diz,...

This paper presents clinically-based studies of two acquisitions that received very different stock market reactions at announcements one positive and one negative. Despite the differing market reactions, we find that, ultimately, neither acquisition created value overall. In exploring the...

This paper explores the market reaction to vertical mergers and incorporates into the analysis predictions based on I/O theories.We develop a classification to separate the various types of mergers, and focus on the determinants and wealth impacts of vertical mergers over the period 1979-2002....

This paper empirically studies the effect of acquisitions made by the large US-based technology companies on the entry dynamics and venture capital financing in dif-ferent product markets. We use data from 742 prod-uct markets globally, distinguishing the US and Euro-pean markets, for the years...

An extensive empirical literature in strategy and finance studies the performance implications of corporate diversification. Two core debates in the literature concern the existence of a diversification discount and the relative importance of industry relatedness and market structure for the...

Large business groups, which played a key role in Korea's economic development, are still dominant today, especially in exporting. The concentration of economic power creates a number of problems and risks. Ensuring a level-playing field between the business groups, also called chaebols, and...

The article formulates the information theory of firm, introduces the concept of firm as an operating system, which controls the firm’s operation by the means of the information resources processing, in an analogy with the operating system at a microprocessor in the computing devices,...