Make Room! Make Room! A Note on Sequential Spinoffs and Acquisitions

Working Papers

This project considers how merger and acquisition (M&A) activity evolves when companies undertake corporate spinoffs. One of the key roles of the CEOs and top management teams of diversified firms is to manage these companies’ corporate development activities, particularly as the technological landscape shifts.Read More

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

Dual Directors and the Governance of Corporate Spinoffs

Published Research

This paper investigates how “dual directors” enable firms that undertake corporate spinoffs to manage their post-spinoff relationships with the firms they divest, as well as the performance implications of dual directors serving simultaneously on these companies’ boards.Read More

Managerial Compensation and Corporate Spinoffs

Published Research

This article investigates how corporate spinoffs affect managerial compensation. These deals are found to improve the alignment of spinoff firm managers’ incentive compensation with stock market performance, especially among spinoff firm managers that used to be divisional managers of the spun-off subsidiary, and particularly when the spun-off subsidiary performs better than or is unrelated to its parent firm’s remaining businesses.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