Cel In this research we are interested in examining the effects of controlling shareholder diversification on firms’ operating strategies and outcomes. Our project involves the following logical building blocks: 1.Firms vary with respect to the degree of controlling shareholder diversification. 2.Firms’ controlling shareholder diversification feeds into their objective functions and in particular, their risk taking. 3.Operating strategies (such as investment/quantity/price decisions) as well as financial strategies (such as leverage and dividends) affect both the mean and variance of profits and depend on the degree of diversification of controlling shareholders. 4.Firms’ strategies affect optimal strategies of their product market rivals. Product market competition can amplify the effects of controlling shareholders (lack of) diversification on operating and financial strategies. We contribute to the examination of the relation between owner diversification and firms’ strategies and outcomes along the following empirical and theoretical dimensions. 1.We use the most comprehensive data set (Amadeus) on both firms’ strategies and outcomes and on the diversification of controlling owners. which allows examining continuous distributions of controlling shareholders’ degrees of diversification. 2.We provide a theoretical analysis demonstrating the effects of shareholder diversification and public/private status on equilibrium ROA, profitability, and investment. 3.We examine the effects of product market competition on the differences between ROA, profitability, and investment of public and private firms and, more generally, the effects of product market competition on the relation between controlling owners’ diversification on firms’ strategies and outcomes. 4.We examine the effects of volatility shocks on the relation between controlling shareholders’ diversification on one side and ROA, profitability, sales growth, and investment on the other side. Program(-y) FP7-PEOPLE - Specific programme "People" implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) Temat(-y) FP7-PEOPLE-2012-CIG - Marie-Curie Action: "Career Integration Grants" Zaproszenie do składania wniosków FP7-PEOPLE-2012-CIG Zobacz inne projekty w ramach tego zaproszenia System finansowania MC-CIG - Support for training and career development of researcher (CIG) Koordynator REICHMAN UNIVERSITY Wkład UE € 100 000,00 Adres 8 HAUNIVERSITA ST 4610101 Herzliya Izrael Zobacz na mapie Rodzaj działalności Higher or Secondary Education Establishments Kontakt administracyjny Eric Zimmerman (Dr.) Linki Kontakt z organizacją Opens in new window Strona internetowa Opens in new window Koszt całkowity Brak danych
