1,721,014 research outputs found
Drivers of value creation-The role of value-based management and underlying institutions
No full textWhile the performance effect of value-based management (VBM) has been debated in practice and academia, recent research suggests that little is known about contingency factors influencing this effect. In this study, we contribute to the understanding of contingencies that could explain variations in VBM performance outcomes. Specifically, we (1) test whether VBM relates to higher firm performance, and (2) we examine the external institutional conditions that may magnify the performance effect of VBM. We empirically analyze our research question using data on 4288 firm-years of firms from the MSCI Europe Index and the S&P 500 Index between 2005 and 2010. After controlling for various possible confounding effects, we find that VBM relates to higher firm performance and provide evidence that complementary external institutions at the firm and national levels amplify the performance effect of VBM. Furthermore, our findings exhibit an interrelation between external institutions and indicate a complementary relationship between VBM, financially-oriented ownership, and national shareholder orientation, increasing value creation. (C) 2016 Elsevier Ltd. All rights reserved
CFO emphasis on value-based management: Performance implications and the challenge of CFO succession
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Fooled by the hype? The influence of technology hype on acquisition premiums in digital M&As
No full texthttp://dx.doi.org/10.13039/501100001721 Rijksuniversiteit Groninge
Digital M&A, digital innovation, and firm performance: an empirical investigation
Full text linkAiming to support digital innovation endeavours, industrial-age companies increasingly acquire firms that heavily build upon digital technologies. Related research has raised serious concerns regarding the prospects of such plans, yet has not focused the particular context of digital mergers and acquisitions (M&A). Drawing on a knowledge-based perspective as well as the particularities of digital technologies and the context of digital innovation, we theorise the link between digital M&A, a digital knowledge base on the part of the acquirer, and the consequences for digital innovation and firm performance. We employ panel data regressions to a longitudinal dataset of the world's largest automobile manufacturers. Our findings suggest that executing digital M&A contributes to building the digital knowledge base of industrial-age firms, which in turn enables them to drive digital innovation. Our findings further indicate that digital innovation improves firm performance of industrial-age firms. We discuss implications for information systems research about M&A and digital innovation as well as recommendations for managerial practice
Does value-based management facilitate managerial decision-making? An analysis of divestiture decisions
Full text linkWhile recent studies indicate that value-based management (VBM) helps owners in aligning managerial interests (i.e., decision-influencing role), little evidence is provided for its support in managerial decision-making (i.e., decision-facilitating role). We investigate whether the depth of VBM implementation and contextual factors may determine VBM’s decision-facilitating role. We investigate our research question on a dataset of 1,774 divestitures by European firms between 2005 and 2016. Divestitures allow for the analysis of managerial decision-making in situations where managerial self-interest is less pronounced and, thus, where VBM’s decision-facilitating role can be differentiated from its decision-influencing role. Our empirical results indicate that VBM implementation down to the business-unit level is positively associated with divestiture returns, while we find no such effect if VBM implementation is limited to the corporate level. Further empirical tests indicate that this positive association is contingent on a high dispersion of the costs of capital across a firm’s business portfolio. In sum, our study indicates that VBM can facilitate managerial decision-making when firms consider its depth of implementation and firm-specific information needs
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