This paper investigates the cor-porate parenting advantage, the extent to which corporate parents improve the performance of theirsubsidiaries. …Read More
The Corporate Parenting Effect, Revisited
diversification
Corporate Spin-Offs and Capital Allocation Decisions
This paper investigates how spin-offs affect capital allocation decisions in diversified firms. The sensitivity of capital expenditures to investment opportunities, representing the efficiency of capital allocation decisions, improves when firms undertake spin-offs.…Read More
When Do Firms Divest Foreign Operations?
Extant literature on divestment has repeatedly found that firms are likely to divest their poorly performing operations. In this paper, I consider how product market relatedness and geographic market differences in growth, policy stability, and exchange rate volatility can moderate the negative relationship between performance and divestment.…Read More