The Experts below are selected from a list of 49149 Experts worldwide ranked by ideXlab platform
Richard Squire - One of the best experts on this subject based on the ideXlab platform.
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Strategic Liability in the Corporate Group
University of Chicago Law Review, 2011Co-Authors: Richard SquireAbstract:The typical large corporation divides itself into numerous subsidiaries but then overrides the liability barriers between them by having the subsidiaries and the parent company cross-guarantee each other’s major debts. Previous scholarly theories of the Corporate Group cannot explain why. The leading theory posits that the subsidiaries make it easier for creditors to evaluate risk because they enable each creditor to lend against a discrete asset pool within the broader enterprise. But any such efficiency would be undercut by the guarantees, which transmit credit risk across subsidiary boundaries. This Article argues that the combination of subsidiaries and intraGroup guarantees reflects a type of shareholder opportunism termed correlation-seeking. Because the insolvency risks of the entities in the typical Corporate Group are highly correlated, the intraGroup guarantees provide the Group’s shareholders with a one-way bet. The guarantees lower the interest rates on the guaranteed debts, thus enriching the shareholders as long as the Group stays solvent. And if the Group falls insolvent, the triggering of liability on the guarantees makes no difference to the shareholders, whose equity stakes are wiped out anyway. The guarantees instead dilute the recoveries of the Group’s nonguaranteed creditors. This separation of burden and benefit induces firms to form too many subsidiaries and to overuse guarantees, thereby undermining transparency, complicating bankruptcy proceedings, and introducing other distortions. Current fraudulent transfer doctrine perversely upholds those guarantees that are most likely to be overused. Doctrinal reform based on risk correlations would deter guarantee overuse and would reduce bankruptcy courts’ dependence on the controversial remedy of substantive consolidation.
Antonio Corvino - One of the best experts on this subject based on the ideXlab platform.
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improving the financial performance of smes the presence in foreign markets and the moderating role of Corporate Group and alliance portfolio size
Business Process Management Journal, 2019Co-Authors: Lorenzo Ardito, Francesco Galati, Antonio Messeni Petruzzelli, Antonio CorvinoAbstract:The purpose of this paper is to assess the influence of the presence in foreign markets on small- and medium-sized enterprises’ (SMEs) financial performance. Furthermore, it seeks to examine the moderating effect of Corporate Group and alliance portfolio size on this relationship.,First, the authors develop hypotheses concerning the relationship between the presence in foreign markets and SMEs’ financial performance as well as the moderating role of the size of an SME’s Corporate Group and alliance portfolio. Afterward, the authors used ordinary least square regression to the test the hypotheses based on a sample of 5,885 high-tech US SMEs registered in the Orbis database (Bureau van Dijk).,Results of the study reveal that the presence in foreign markets is positively associated with an SME’s financial performance, with the size of the Corporate Group enhancing this relationship, hence confirming the conjectures. Instead, the size of the alliance portfolio appears to not exert any moderating effect, in contrast with the last hypothesis.,Form a theoretical perspective, the authors dig into the literature assessing the performance outcomes of SMEs and contingent effects of the possibility to tap into external resources of other firms. By so doing, the findings support a specific stream of the literature in claiming the positive effects deriving from being part of a Corporate Group. Conversely, the findings seem to go in the opposite direction of the majority of the literature that claim a positive impact of alliances on financial performances, while supporting those studies stressing that alliances pose significant challenges for SMEs and should be carefully identified and managed.
Gregory Jackson - One of the best experts on this subject based on the ideXlab platform.
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strategy meets institutions the transformation of management labor relations at deutsche telekom and ntt
Industrial and Labor Relations Review, 2006Co-Authors: Mari Sako, Gregory JacksonAbstract:This comparison of labor-management relations at Deutsche Telekom (DT) and NTT Group (formerly Nippon Telephone and Telegraph) demonstrates the value of considering both institutions and strategic decision-making to understand the interaction between companies and unions. As corporations diversify, multi-divisional or holding company structures emerge, but the degree of diversity introduced in employment relations within the Corporate Group depends on the interaction between Corporate strategy and the strategy of organized labor. The authors' field research, based on interviews with managers and labor leaders, shows that despite a broadly similar Corporate strategy of diversification by DT and NTT after the liberalization of telecommunication markets, employment relations became more decentralized—both for unions and for works councils—within the DT Group than within the NTT Group. This difference in outcomes is explained by the relative power and strategic choices of labor and management, rather than by constraints and opportunities specific to the existing national institutions.
Javier F Velazquez - One of the best experts on this subject based on the ideXlab platform.
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using the shapley value approach to variance decomposition in strategy research diversification internationalization and Corporate Group effects on affiliate profitability
Southern Medical Journal, 2021Co-Authors: Dmitry Sharapov, Paul Kattuman, Diego Rodriguez Rodriguez, Javier F VelazquezAbstract:Research Summary Variance decomposition methods allow strategy scholars to identify key sources of heterogeneity in firm performance. However, most extant approaches produce estimates that depend on the order in which sources are considered, the ways they are nested, and which sources are treated as fixed or random effects. In this paper, we propose the use of an axiomatically justified, unique, and effective solution to this limitation: the “Shapley Value” approach. We show its effectiveness compared to extant methods using both simulated and real data, and use it to explore how the importance of business Group effects varies with Group diversification and internationalization in a large, representative sample of European firms. We thus demonstrate the method's superior accuracy and its usefulness in asking and answering new questions. Managerial Summary A key contribution of strategic management research to managerial practice is identifying drivers of firm performance that operate at firm, corporation, industry, and national levels. A branch of this research measures the relative importance of factors at these different levels in producing variation in firm performance, thus helping top managers focus efforts on aspects of their businesses most likely to yield performance differences. However, estimates produced by extant methods are sensitive to method used, and to modeling choices made. This paper proposes the use of the “Shapley Value” approach, which is free from such sensitivity, shows its effectiveness compared to extant methods, and uses it to explore how the importance of factors at the level of the business Group varies with Group diversification and internationalization.
Fj Velazquez - One of the best experts on this subject based on the ideXlab platform.
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Using the Shapley value approach to variance decomposition in strategy research: diversification, internationalization, and Corporate Group effects on affiliate profitability
'Organisation for Economic Co-Operation and Development (OECD)', 2021Co-Authors: Sharapov D, Kattuman Paul, Rodriguez D, Fj VelazquezAbstract:Research Summary: Variance decomposition methods allow strategy scholars to identify key sources of heterogeneity in firm performance. However, most extant approaches produce estimates that depend on the order in which sources are considered, the ways they are nested, and which sources are treated as fixed or random effects. In this paper, we propose the use of an axiomatically justified, unique, and effective solution to this limitation: the “Shapley Value” approach. We show its effectiveness compared to extant methods using both simulated and real data, and use it to explore how the importance of business Group effects varies with Group diversification and internationalization in a large, representative sample of European firms. We thus demonstrate the method’s superior accuracy and its usefulness in asking and answering new questions.Cambridge Judge Business School Entrepreneurship Centre Universidad Complutense de Madri
