This paper investigates the interaction between synergies and internal agency conflicts that
emerges endogenously in multi‐division firms. A divisional manager's entrenchment choice …

In this study, we examine unsuccessful takeover attempts for new evidence on whether
mergers create or destroy value for acquirers and targets. We contribute to the literature in …

Recent empirical literature documents value-destroying" cross-subsidization" among the
divisions of diversified firms. However, this literature relies upon two maintained hypotheses …

A substantial empirical literature documents value-destroying" cross-subsidization" among
the divisions of diversified firms. However, this literature relies upon two maintained …

Theory suggests that synergy is an essential ingredientfor value creation to occur as a result
of acquisitions. This dominant theory often argues for similarities among resources in the …

Resource dependence theory has been widely applied to explain interindustry acquisitions,
but little is known about how external and internal dependence conditions affect the …

Large companies are usually organized into business units, yet some activities are almost
always centralized in a company-wide functional unit. We first show that organizations …

Purpose–When a merger or an acquisition fails, usually integration problems or
overpayment gets the blame. The authors illustrate that a common cause of failure is the …

Using an ecological lens, we extend strategic management and industrial organization
theory to investigate the performance effects of horizontal mergers. We theorize that firms …

This article develops a theory of mergers and divestitures. The motivation stems from
inability to finance marginally profitable projects as stand‐alones due to agency problems. A …