Corporate Spin-Offs and Capital Allocation Decisions

Published Research

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

Renting Capabilities from Consultants in Post-Acquisition Integration

Funded Research Proposal

This research investigates capability development at the business unit level of analysis. To do so, we consider business units that have been serially bought and sold, or “repeatedly divested” units.Read More

Business Unit Divestiture Capability: Development and Performance Impact

Funded Research Proposal

This research project investigates the role of consultants and their “rented capabilities” in the post-acquisition integration process. As a first objective, we aim to shed light on the role of intermediaries — specifically, consultants — in the growth-by-acquisition process.Read More

Acquisitions and Divestitures in Family Firms

Funded Research Proposal

In this project, I seek to compare how effectively family firms undertake and implement acquisitions and divestitures relative to their non-family counterparts. While family firms are less likely than non-family firms to undertake divestitures, the stock market returns earned by the family firms that undertake these deals exceed those of non-family firms.Read More

Organizations Lost in Limbo?: An Investigation of the Impact of Impending Divestiture on Business Unit Strategy & Performance

Working Papers

This research examines the impact of impending divestiture on business unit strategy and performance. Divestiture deals can be multi-year transactions with highly uncertain endings. During the deal period, as the parent-unit tie weakens, business units are placed into an organizationally-orphaned, limbo-like state.Read More

Divestiture Capability and Firm Performance

Funded Research Proposal

In order to sustainably innovate and grow, firms must, at times, shrink. This research is premised on the concept that the success of a firm’s innovation strategy relies not just on its ability to “grow smart,” but equally on its ability to “shrink smart.”Read More

When Do Firms Divest Foreign Operations?

Published Research

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

Why Do Firms Divest?

Published Research

In this paper, I examine how lower-cost production and new market opportunities influence the divestment decisions of firms. I argue that lower-cost production and new market opportunities in foreign markets can provide a better use of existing firm resources and posit that these opportunities are likely to influence firm divestment of home-country operations.Read More