Do Firms Proactively Build Internal Markets for Redeployment? Evidence from a Natural Experiment

References

• Anand J , Singh H (1997) Asset redeployment, acquisitions, and corporate strategy in declining industries. Strategic Management J. 18(S1):99–118.Crossref, Google Scholar
• Andrews D , Sánchez AC , Johansson Å (2011) Housing markets and structural policies in OECD countries. OECD Economics Department Working Paper No. 836, OECD, Paris, France.Google Scholar
• Angrist JD , Pischke JS (2008) Mostly Harmless Econometrics: An Empiricist’s Companion (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• Ansoff HI (1957) Strategies for diversification. Harvard Bus. Rev. 35(5):113–124.Google Scholar
• Beatty A , Liao S , Weber J (2010) Financial reporting quality, private information, monitoring, and the lease-vs.-buy decision. Accounting Rev. 85(4):1215–1238.Crossref, Google Scholar
• Becker T , Biewen E , Schultz S , Weisbecker M (2020) Corporate balance sheets (Ustan) 1987–2019. Data Report No. 2020-08 Metadata Version 4, Deutsche Bundesbank Research Data and Service Centre.Google Scholar
• Belenzon S , Tsolmon U (2016) Market frictions and the competitive advantage of internal labor markets. Strategic Management J. 37(7):1280–1303.Crossref, Google Scholar
• Bell RM , McCaffrey DF (2002) Bias reduction in standard errors for linear regression with multi-stage samples. Surveys Methodology 28(2):169–181.Google Scholar
• Berger PG , Ofek E (1995) Diversification’s effect on firm value. J. Financial Econom. 37(1):39–65.Crossref, Google Scholar
• Berry H (2010) Why do firms divest? Organ. Sci. 21(2):380–396.Link, Google Scholar
• Besley T , Meads N , Surico P (2014) The incidence of transaction taxes: Evidence from a stamp duty holiday. J. Public Econom. 119(November):61–70.Crossref, Google Scholar
• Best MC , Kleven HJ (2018) Housing market responses to transaction taxes: Evidence from notches and stimulus in the UK. Rev. Econom. Stud. 85(1):157–193.Crossref, Google Scholar
• Brown S , Warner J (1985) Using daily stock returns: The case of event studies. J. Financial Econom. 14(1):3–31.Crossref, Google Scholar
• Buettner T , Krause M (2021) Fiscal equalization as a driver of tax increases: Empirical evidence from Germany. Internat. Tax Public Finance 28(1):90–112.Crossref, Google Scholar
• Chandler AD (1962) Strategy and Structure: Chapters in the History of the Industrial Empire (MIT Press, Cambridge, MA).Google Scholar
• Christofzik DI , Feld L , Yeter M (2020) Heterogeneous price and quantity effects of the real estate transfer tax in Germany. Freiburger Dikussionspapier zur Ordnungsokonomik No. 20/10.Google Scholar
• Cleeren K , Verboven F , Dekimpe MG , Gielens K (2010) Intra- and interformat competition among discounters and supermarkets. Marketing Sci. 29(3):456–473.Link, Google Scholar
• Corstjens M , Lal R (2012) Retail doesn’t cross borders. Harvard Bus. Rev. 90(4):104–111.Google Scholar
• Dachis B , Duranton G , Turner MA (2012) The effects of land transfer taxes on real estate markets: Evidence from a natural experiment in Toronto. J. Econom. Geography 12(2):327–354.Crossref, Google Scholar
• Davidoff I , Leigh A (2013) How do stamp duties affect the housing market? Econom. Rec. 89(286):396–410.Crossref, Google Scholar
• Delhaize (2012) Delhaize Group reports 2011 revenues and announces network optimization to accelerate profitable growth. Accessed July 20, 2021, http://hugin.info/133961/R/1576963/491561.pdf.Google Scholar
• Devaney S , McAllister P , Nanda A (2017) Which factors determine transaction activity across US metropolitan office markets? J. Portfolio Management 43(6):90–104.Crossref, Google Scholar
• Dickler TA , Folta TB (2020) Identifying internal markets for resource redeployment. Strategic Management J. 41(13):2341–2371.Crossref, Google Scholar
• Dixit AK (1989) Entry and exit decisions under uncertainty. J. Political Econom. 97(3):620–638.Crossref, Google Scholar
• Dolls M , Fuest C , Krolage C , Neumeier F (2021) Who bears the burden of real estate transfer taxes? Evidence from the German housing market. CESifo Working Paper No. 8839, CESifo, Munich, Germany.Google Scholar
• Donald SG , Lang K (2007) Inference with difference-in-differences and other panel data. Rev. Econom. Statist. 89(2):221–233.Crossref, Google Scholar
• Folta TB , Helfat CE , Karim S (2016) Examining resource redeployment in multi-business firms. Resource Redeployment and Corporate Strategy , Advances in Strategic Management, vol. 35 (Emerald Group Publishing Limited, Leeds, UK), 1–17.Crossref, Google Scholar
• Foot Locker (2021) Foot Locker, Inc. reports 2021 third quarter results. Accessed September 20, 2022, https://investors.footlocker-inc.com/news-releases/news-release-details/foot-locker-inc-reports-2021-third-quarter-results.Google Scholar
• Frenzel Baudisch C , Dresselhaus C (2018) Impact of the German real estate transfer: Tax on the commercial real estate market. Finanzwissenschaftliche Arbeitspapiere Working Paper No. 100, Giessen, Germany.Google Scholar
• Fritzsche C , Vandrei L (2019) The German real estate transfer tax: Evidence for single-family home transactions. Regional Sci. Urban Econom. 74(January):106–123.Google Scholar
• Garvin DA , Levesque LC (2008) The multiunit enterprise. Harvard Bus. Rev. 86(6):106–117.Google Scholar
• Giarratana MS , Santaló J (2020) Transaction costs in resource redeployment for multiniche firms. Organ. Sci. 31(5):1159–1175.Link, Google Scholar
• Gonzalez-Benito O , Munoz-Gallego PA , Kopalle PK (2005) Asymmetric competition in retail store formats: Evaluating inter- and intra-format spatial effects. J. Retailing 81(1):59–73.Crossref, Google Scholar
• Gruidl N , Kong JL (2012) Flexibility for intragroup restructuring and asset transfers. Accessed July 20, 2021, https://www.thetaxadviser.com/issues/2012/apr/clinic-story-02.html.Google Scholar
• HahnAG (2020) Retail real estate report 2020/2021. Accessed September 20, 2022, https://www.hahnag.de/media/hahn/Downloads_PDF/Publikationen/Research/HG-RRER2020_2021-WEB_engl.pdf.Google Scholar
• HahnAG (2021) Retail real estate report 2021/2022. Accessed September 20, 2022, https://www.hahnag.de/media/hahn/Downloads_PDF/Publikationen/Research/Retail_Report_2021-2022_english.pdf.Google Scholar
• Helfat CE , Eisenhardt KM (2004) Inter-temporal economies of scope, organizational modularity, and the dynamics of diversification. Strategic Management J. 25(13):1217–1232.Crossref, Google Scholar
• Holmstrom B , Roberts J (1998) The boundaries of the firm revisited. J. Econom. Perspectives 12(4):73–94.Crossref, Google Scholar
• Jiménez-Valladolid de L’Hotellerie-Fallois DJ (2014) Reorganization Clauses in Tax Treaties (IBFD, Amsterdam).Crossref, Google Scholar
• Kaufman L (2001) Federated to close Stern’s and rename or shut stores. New York Times (February 9), https://www.nytimes.com/2001/02/09/nyregion/federated-to-close-stern-s-and-rename-or-shut-stores.html.Google Scholar
• Koetter M , Marek P , Mavropoulos A (2022) Real estate transaction taxes and credit supply. Working Paper No. 26, Halle Institute for Economic Research, Halle, Germany.Google Scholar
• Kogut B , Kulatilaka N (1994) Operating flexibility, global manufacturing, and the option value of a multinational network. Management Sci. 40(1):123–139.Link, Google Scholar
• Laeven L , Valencia F (2013) Systemic banking crises database. IMF Econom. Rev. 61(2):225–270.Crossref, Google Scholar
• Lai H , Milcheva S (2023) To rent or to own? The effect of additional transaction tax on buy-to-let housing market. Working paper, University College, London.Google Scholar
• Levinthal DA , Wu B (2010) Opportunity costs and non-scale free capabilities: Profit maximization, corporate scope, and profit margins. Strategic Management J. 31(7):780–801.Crossref, Google Scholar
• Lewellen WG (1971) A pure financial rationale for the conglomerate merger. J. Finance 26(2):521–537.Crossref, Google Scholar
• Lieberman MB , Lee GK , Folta TB (2017) Entry, exit, and the potential for resource redeployment. Strategic Management J. 38(3):526–544.Crossref, Google Scholar
• Lieser K , Groh AP (2014) The determinants of international commercial real estate investment. J. Real Estate Finance Econom. 48(4):611–659.Crossref, Google Scholar
• Matheson T (2012) Security transaction taxes: Issues and evidence. Internat. Tax Public Finance 19(6):884–912.Crossref, Google Scholar
• Morandi Stagni R , Santaló J , Giarratana MS (2020) Product‐market competition and resource redeployment in multi‐business firms. Strategic Management J. 41(10):1799–1836.Crossref, Google Scholar
• Parkyn K , Courtney S (2016) Corporate restructures and Australian stamp duty. Accessed July 20, 2021, https://www.kwm.com/en/au/knowledge/insights/corporate-restructures-australian-stamp-duty-landholder-20160224.Google Scholar
• Penrose ET (1959) The Theory of the Growth of the Firm (Oxford University Press, Oxford, UK).Google Scholar
• Petkova K , Weichenrieder A (2017) Price and quantity effects of the German real estate transfer tax. CESifo Working Paper No. 6538, CESifo, Munich, Germany.Google Scholar
• Poterba JM (1984) Tax subsidies to owner-occupied housing: An asset-market approach. Quart. J. Econom. 99(4):729–752.Crossref, Google Scholar
• Poulhès M (2020) Housing market responses to transfer taxes: Evidence from a French reform. Working Paper No. 2020-23, Center for Research in Economics and Statistics, Palaiseau, France.Google Scholar
• PwC (2018) Real estate going global: Tax and legal aspects of real estate investments around the globe. Accessed July 20, 2021, www.pwc.com/goingglobal.Google Scholar
• Rappen H (2011) Wirkungen einer Erhöhung der Grunderwerbsteuer: Endbericht-September 2011. Forschungsprojekt im Auftrag der Industrie- und Handelskammer (IHK) (Region Stuttgart). Working paper, Stuttgart, Germany.Google Scholar
• Rumelt RP , Schendel DE , Teece DJ (1994) Fundamental Issues in Strategy: A Research Agenda (Harvard Business Press, Cambridge, MA).Google Scholar
• Sakhartov AV (2017) Economies of scope, resource relatedness, and the dynamics of corporate diversification. Strategic Management J. 38(11):2168–2188.Crossref, Google Scholar
• Sakhartov AV , Folta TB (2014) Resource relatedness, redeployability, and firm value. Strategic Management J. 35(12):1781–1797.Crossref, Google Scholar
• Salpini C (2021) Foot Locker to convert, wind down most Footaction stores. Accessed September 20, 2022, https://www.retaildive.com/news/foot-locker-to-convert-wind-down-most-footaction-stores/600604/.Google Scholar
• Santamaria S (2022) Portfolio entrepreneurs’ behavior and performance: A resource redeployment perspective. Management Sci. 68(1):333–354.Link, Google Scholar
• Scherf W , Dresselhaus C (2016) The case for replacing the real-estate transfer tax. Wirtschaftsdienst 96(November):740–747.Crossref, Google Scholar
• Schneider L , Wrede M (2023) The real estate transfer tax and spatial mobility in Germany. Preprint, submitted April 20, https://dx.doi.org/10.2139/ssrn.4424716.Google Scholar
• Slemrod J , Weber C , Shan H (2017) The behavioral response to housing transfer taxes: Evidence from a notched change in D.C. policy. J. Urban Econom. 100(July):137–153.Crossref, Google Scholar
• Smith CW , Wakeman LM (1985) Determinants of corporate leasing policy. J. Finance 40(3):895–908.Crossref, Google Scholar
• Sohl T , Folta TB (2021) Market exit and the potential for resource redeployment: Evidence from the global retail sector. Strategic Management J. 42(12):2273–2293.Crossref, Google Scholar
• Stein JC (1997) Internal capital markets and the competition for corporate resources. J. Finance 52(1):111–133.Crossref, Google Scholar
• Stein JC (2003) Agency, information and corporate investment. Constantinides GM , Harris M , Stulz RM , eds. Corporate Finance , Handbook of the Economics of Finance, vol. 1A (Elsevier, Amsterdam), 111–165.Crossref, Google Scholar
• Vanistendael F (1998) Taxation of corporate reorganizations. Thuronyi V , ed. Tax Law Design and Drafting , chapter 20, vol. 2 (International Monetary Fund, Washington, DC).Google Scholar
• Villalonga B (2004) Diversification discount or premium? New evidence from the business information tracking series. J. Finance 59(2):479–506.Crossref, Google Scholar
• Williamson OE (1987) Transaction cost economics: The comparative contracting perspective. J. Econom. Behav. Organ. 8(4):617–625.Crossref, Google Scholar
• Wood R (2020) Hundreds of jobs at risk with up to 75 Target stores to close in massive restructure. Accessed July 20, 2021, https://www.9news.com.au/national/target-stores-to-shut-retail-restructure-wesfarmers-kmart-rebranding/20ac7080-27db-47cb-a946-f5fbbb96b118.Google Scholar
• Wu B (2013) Opportunity costs, industry dynamics, and corporate diversification: Evidence from the cardiovascular medical device industry, 1976–2004. Strategic Management J. 34(11):1265–1287.Crossref, Google Scholar