Shopping for Information? Diversification and the Network of Industries

Published Online:https://doi.org/10.1287/mnsc.2014.2060

References

  • Acharya V, Baghai R, Subramanian K (2013) Labor laws and innovation. J. Law Econom. 56:997–1037.CrossrefGoogle Scholar
  • Ahern KR (2013) Network centrality and the cross section of stock returns. Working paper, University of Southern California, Los Angeles.Google Scholar
  • Ahern KR, Harford J (2014) The importance of industry links in merger waves. J. Finance 69:527–576.CrossrefGoogle Scholar
  • Aobdia D, Caskey J, Ozel NB (2014) Inter-industry network structure and the cross-predictability of earnings and stock returns. Rev. Accounting Stud. 19:1191–1224.CrossrefGoogle Scholar
  • Berger PG, Ofek E (1995) Diversification’s effect on firm value. J. Financial Econom. 37:39–65.CrossrefGoogle Scholar
  • Bradley DJ, Kim I, Tian X (2014) Do unions affect innovation? Working paper, University of South Florida, Tampa.Google Scholar
  • Burt RS (1992) Structural Holes: The Social Structure of Competition (Harvard University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Burt RS (2004) Structural holes and good ideas. Amer. J. Sociology 110:349–399.CrossrefGoogle Scholar
  • Burt RS (2005) An Introduction to Social Capital (Oxford University Press, Oxford, UK).Google Scholar
  • Coase R (1937) The nature of the firm. Economica 4:386–405.CrossrefGoogle Scholar
  • Custódio C (2014) Mergers and acquisitions accounting and the diversification discount. J. Finance 69:219–240.CrossrefGoogle Scholar
  • Custódio C, Ferreira MA, Matos PP (2014) Do general managerial skills spur innovation? Working paper, Arizona State University, Phoenix.Google Scholar
  • Fan J, Lang L (2000) The measurement of relatedness: An application to corporate diversification. J. Bus. 73:629–660.CrossrefGoogle Scholar
  • Faure-Grimaud A, Laffont JJ, Martimort D (2003) Collusion, delegation and supervision with soft information. Rev. Econom. Stud. 70:253–279.CrossrefGoogle Scholar
  • Gertner RH, Scharfstein DS, Stein JC (1994) Internal versus external capital markets. Quart. J. Econom. 109:1211–1230.CrossrefGoogle Scholar
  • Gomes-Casseres B, Hagedoorn J, Jaffe AB (2006) Do alliances promote knowledge flows? J. Financial Econom. 80:5–33.CrossrefGoogle Scholar
  • Gormley TA, Matsa DA (2014) Common errors: How to (and not to) control for unobserved heterogeneity. Rev. Financial Stud. 27:617–661.CrossrefGoogle Scholar
  • Graham JR, Lemmon ML, Wolf JG (2002) Does corporate diversification destroy value? J. Finance 57:695–719.CrossrefGoogle Scholar
  • Granovetter M (1973) The strength of weak ties. Amer. J. Sociology 78:1360–1380.CrossrefGoogle Scholar
  • Grossman SJ, Hart OD (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 55:691–719.CrossrefGoogle Scholar
  • Gulati R (1999) Network location and learning: The influence of network resources and firm capabilities on alliance formation. Strategic Management J. 20:397–420.CrossrefGoogle Scholar
  • Hall B, Jaffe A, Trajtenberg M (2001) The NBER patent citations data file: Lessons, insights and methodological tools. NBER Working Paper 8498l, National Bureau of Economic Research, Cambridge, MA.CrossrefGoogle Scholar
  • Hann R, Ogneva M, Ozbas O (2013) Corporate diversification and the cost of capital. J. Finance 68:1961–1999.CrossrefGoogle Scholar
  • Hargadon A (2003) How Breakthroughs Happen (Harvard Business School Press, Boston).Google Scholar
  • Hart OD, Moore J (1990) Property rights and the nature of the firm. J. Political Econom. 98:1119–1158.CrossrefGoogle Scholar
  • Hoberg G, Phillips G (2010) Product market synergies and competition in mergers and acquisitions: A text-based analysis. Rev. Financial Stud. 23(10):3773–3811.CrossrefGoogle Scholar
  • Hochberg YV, Ljungqvist A, Lu Y (2007) Whom you know matters: Venture capital networks and investment performance. J. Finance 62:251–301.CrossrefGoogle Scholar
  • Hubbard RG, Palia D (2002) A reexamination of the conglomerate merger wave in the 1960s: An internal capital markets view. J. Finance 54:1131–1152.CrossrefGoogle Scholar
  • Jackson MO (2008) Social and Economic Networks (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Khanna N, Tice S (2002) The bright side of internal capital markets. J. Finance 56:1489–1528.CrossrefGoogle Scholar
  • Laidlaw J, Lawsky D (2002) GE’s Immelt sees no sign of U.S. upturn till 2003. USA Today (January 28), http://usatoday30.usatoday.com/money/general/2002/01/28/ge.htm.Google Scholar
  • Lang LHP, Stulz RM (1994) Tobin’s q, corporate diversification, and firm performance. J. Political Econom. 102:1248–1280.CrossrefGoogle Scholar
  • Lawson AM, Bersani KS, Fahim-Nader M, Guo J (2002) Benchmark input-output accounts of the United States, 1997. Survey of Current Business (December):19–109.Google Scholar
  • Lindsey L (2008) Blurring firm boundaries: The role of venture capital in strategic alliances. J. Finance 63:1137–1168.CrossrefGoogle Scholar
  • Maksimovic V, Phillips G (2002) Do conglomerate firms allocate resources inefficiently? J. Finance 57:721–767.CrossrefGoogle Scholar
  • Manso G (2011) Motivating innovation. J. Finance 66:1823–1869.CrossrefGoogle Scholar
  • Massa M, Rehman Z (2008) Information flows within financial conglomerates: Evidence from the banks-mutual funds relation. J. Financial Econom. 89:288–306.CrossrefGoogle Scholar
  • Mathews RD, Robinson DT (2008) Market structure, internal capital markets, and the boundaries of the firm. J. Finance 63: 2703–2736.CrossrefGoogle Scholar
  • McEvily B, Marcus A (2005) Embedded ties and the acquisition of competitive capabilities. Strategic Management J. 26:1033–1055.CrossrefGoogle Scholar
  • Mol MJ, Birkinshaw J (2009) The sources of management innovation: When firms introduce new management practices. J. Bus. Res. 62:1269–1280.CrossrefGoogle Scholar
  • Ozsoylev H, Walden J, Yavuz MD, Bildik R (2014) Investor networks in the stock market. Rev. Financial Stud. 27:1323–1366.CrossrefGoogle Scholar
  • Potter J, Moore B, Spires R (2003) Foreign manufacturing investment in the United Kingdom and the upgrading of supplier practices. Regional Stud. 37:41–60.CrossrefGoogle Scholar
  • Powell WW, Koput KW, Smith-Doerr L (1996) Interorganizational collaboration and the locus of innovation: Networks of learning in biotechnology. Admin. Sci. Quart. 41:116–145.CrossrefGoogle Scholar
  • Robertson M, Swan J, Newell S (1998) The role of networks in the diffusion of technological innovation. J. Management Stud. 33:333–359.CrossrefGoogle Scholar
  • Robinson DT (2008) Strategic alliances and the boundaries of the firm. Rev. Financial Stud. 21:649–681.CrossrefGoogle Scholar
  • Santalo J, Becerra M (2008) Competition from specialized firms and the diversification-performance linkage. J. Finance 63:851–883.CrossrefGoogle Scholar
  • Sanzhar SV (2006) Discounted but not diversified: Organizational structure and conglomerate discount. Working paper, University of North Carolina at Chapel Hill, Chapel Hill.Google Scholar
  • Schoar A (2002) Effects of corporate diversification on productivity. J. Finance 57:2379–2403.CrossrefGoogle Scholar
  • Seru A (2014) Firm boundaries matter: Evidence from conglomerates and R&D activity. J. Financial Econom. 111:381–405.CrossrefGoogle Scholar
  • Servaes H (1996) The value of diversification during the conglomerate merger wave. J. Finance 51:1201–1255.CrossrefGoogle Scholar
  • Shin HH, Stulz R (2000) Firm value, risk, and growth opportunities. Working paper, Ohio State University, Columbus.CrossrefGoogle Scholar
  • Shleifer A, Vishny RW (1991) Takovers in 60s and 80s: Evidence and implications. Strategic Management J. 12:51–59.CrossrefGoogle Scholar
  • Stein JC (2002) Information production and capital allocation: Decentralized versus hierarchical firms. J. Finance 57:1891–1921.CrossrefGoogle Scholar
  • Tate G, Yang L (2014) The bright side of corporate diversification: Evidence from internal labor markets. Working paper, University of North Carolina at Chapel Hill, Chapel Hill.Google Scholar
  • Villalonga B (2004) Diversification discount or premium? New evidence from the business information tracking series. J. Finance 59:479–506.CrossrefGoogle Scholar
  • Williamson O (1975) Markets and Hierarchies: Analysis and Antitrust Implications (Free Press, New York).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.