Conglomerates revisited

Recent studies of corporate restructuring have arrived at conclusions that are contradictory when applied to conglomerates. Studies, often based only on manufacturing firms, argue for and against the benefits of conglomerate diversification. This paper reviews the more recent developments in this li...

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Veröffentlicht in:	Strategic management journal 1988-09, Vol.9 (5), p.403-414
Hauptverfasser:	Williams, Jeffrey R., Paez, Betty Lynn, Sanders, Leonard
Format:	Artikel
Sprache:	eng
Schlagworte:	Acquisitions & mergers Brand loyalty Business conglomerates Business structures Conglomerates Corporate governance Corporate reorganization Corporations Diversification Divestiture Economies of scope Financial management Industrial sectors Organizational structure Product lines Statistical analysis Strategic management Studies
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Beschreibung
Zusammenfassung:	Recent studies of corporate restructuring have arrived at conclusions that are contradictory when applied to conglomerates. Studies, often based only on manufacturing firms, argue for and against the benefits of conglomerate diversification. This paper reviews the more recent developments in this literature. We then construct a comprehensive sample of conglomerates that allows us to examine changes in conglomerate behavior over the period 1975-84 as manifested in acquisition and divestiture decisions. Our results suggest that conglomerate managers are reducing the complexity of the conglomerate enterprise by decreasing the average number of businesses managed, and by increasing the degree of business-relatedness within the conglomerate enterprise.
ISSN:	0143-2095 1097-0266
DOI:	10.1002/smj.4250090502