Revisiting Internal Capital Market Efficiency: A Strategic View

References

• Ahuja G, Novelli E (2017) Redirecting research efforts on the diversification–Performance linkage: The search for synergy. Acad. Management Ann. 11(1):342–390.Crossref, Google Scholar
• Alcácer J, Chung W, Hawk A, Pacheco-de-Almeida G (2018) Applying random coefficient models to strategy research: Identifying and exploring firm heterogeneous effects. Strategy Sci. 3(3):533–553.Link, Google Scholar
• Antle R, Eppen GD (1985) Capital rationing and organizational slack in capital budgeting. Management Sci. 31(2):163–174.Link, Google Scholar
• Arrfelt M, Wiseman RM, Hult GTM (2013) Looking backward instead of forward: Aspiration-driven influences on the efficiency of the capital allocation process. Acad. Management J. 56(4):1081–1103.Crossref, Google Scholar
• Arrfelt M, Wiseman RM, McNamara G, Hult GTM (2015) Examining a key corporate role: The influence of capital allocation competency on business unit performance. Strategic Management J. 36(7):1017–1034.Crossref, Google Scholar
• Baldwin CY, Clark KB (1992) Capabilities and capital investment: New perspectives on capital budgeting. J. Appl. Corporate Finance 5(2):67–82.Crossref, Google Scholar
• Bardolet D, Brown A, Lovallo D (2017) The effects of relative size, profitability, and growth on corporate capital allocations. J. Management 43(8):2469–2496.Crossref, Google Scholar
• Bardolet D, Fox CR, Lovallo D (2011) Corporate capital allocation: A behavioral perspective. Strategic Management J. 32(13):1465–1483.Crossref, Google Scholar
• Barney J (1991) Firm resources and sustained competitive advantage. J. Management 17(1):99–120.Crossref, Google Scholar
• Berger PG, Ofek E (1995) Diversification’s effect on firm value. J. Financial Econom. 37(1):39–65.Crossref, Google Scholar
• Billett MT, Mauer DC (2003) Cross-subsidies, external financing constraints, and the contribution of the internal capital market to firm value. Rev. Financial Stud. 16(4):1167–1201.Crossref, Google Scholar
• Bowman C, Ambrosini V (2000) Value creation versus value capture: Towards a coherent definition of value in strategy. British J. Management 11(1):1–15.Crossref, Google Scholar
• Bowman EH, Helfat CE (2001) Does corporate strategy matter? Strategic Management J. 22(1):1–23.Crossref, Google Scholar
• Busenbark JR, Wiseman RM, Arrfelt M, Woo HS (2017) A review of the internal capital allocation literature: Piecing together the capital allocation puzzle. J. Management 43(8):2430–2455.Crossref, Google Scholar
• Bryce DJ, Winter SG (2009) A general interindustry relatedness index. Management Sci. 55(9):1570–1585.Link, Google Scholar
• Coff RW (1999) When competitive advantage doesn’t lead to performance: The resource-based view and stakeholder bargaining power. Organ. Sci. 10(2):119–133.Link, Google Scholar
• Cyert RM, March JG (1963) A Behavioral Theory of the Firm (Prentice Hall, Englewood Cliffs, NJ).Google Scholar
• Dickler TA, Folta TB (2020) Identifying internal markets for resource redeployment. Strategic Management J. 41(13):2341–2371.Crossref, Google Scholar
• Dierickx I, Cool K (1989) Asset stock accumulation and sustainability of competitive advantage. Management Sci. 35(12):1504–1511.Link, Google Scholar
• Duchin R, Sosyura D (2013) Divisional managers and internal capital markets. J. Finance 68(2):387–429.Crossref, Google Scholar
• FASB (Financial Accounting Standards Board) (1997) Disclosures about segments of an enterprise and related information. Statement of Financial Accounting Standards No. 131. FASB, Norwalk, CT.Google Scholar
• Gaspar JM, Massa M (2011) The role of commonality between CEO and divisional managers in internal capital markets. J. Financial Quant. Anal. (Oxford) 46(3):841–869.Crossref, Google Scholar
• Glaser M, Lopez-De-Silanes F, Sautner Z (2013) Opening the black box: Internal capital markets and managerial power. J. Finance 68(4):1577–1631.Crossref, Google Scholar
• Harris M, Raviv A (1996) The capital budgeting process: Incentives and information. J. Finance 51(4):1139–1174.Crossref, Google Scholar
• Helfat CE, Peteraf MA (2003) The dynamic resource‐based view: Capability lifecycles. Strategic Management J. 24(10):997–1010.Crossref, Google Scholar
• Hough JR (2006) Business segment performance redux: A multilevel approach. Strategic Management J. 27(1):45–61.Crossref, Google Scholar
• Jensen MC, Meckling WH (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.Crossref, Google Scholar
• Kuppuswamy V, Villalonga B (2016) Does diversification create value in the presence of external financing constraints? Evidence from the 2007–2009 financial crisis. Management Sci. 62(4):905–923.Link, Google Scholar
• Lee GK, Lieberman MB (2010) Acquisition vs. internal development as modes of market entry. Strategic Management J. 31(2):140–158.Crossref, 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
• Lewis JB, Linzer DA (2005) Estimating regression models in which the dependent variable is based on estimates. Political Anal. (Oxford) 13(4):345–364.Crossref, Google Scholar
• Lovallo D, Brown AL, Teece DJ, Bardolet D (2020) Resource re‐allocation capabilities in internal capital markets: The value of overcoming inertia. Strategic Management J. 41(8):1365–1380.Crossref, Google Scholar
• Maritan CA (2001) Capital investment as investing in organizational capabilities: An empirically grounded process model. Acad. Management J. 44(3):513–531.Crossref, Google Scholar
• Maritan CA, Peteraf MA (2011) Invited editorial: Building a bridge between resource acquisition and resource accumulation. J. Management 37(5):1374–1389.Crossref, Google Scholar
• McGahan AM, Porter ME (1997) How much does industry matter, really? Strategic Management J. 18(S1):15–30.Crossref, Google Scholar
• McGahan AM, Victer R (2010) How much does home country matter to corporate profitability? J. Internat. Bus. Stud. 41(1):142–165.Crossref, Google Scholar
• Misangyi VF, Elms H, Greckhamer T, Lepine JA (2006) A new perspective on a fundamental debate: A multilevel approach to industry, corporate, and business unit effects. Strategic Management J. 27(6):571–590.Crossref, Google Scholar
• Ozbas O, Scharfstein DS (2010) Evidence on the dark side of internal capital markets. Rev. Financial Stud. 23(2):581–599.Crossref, Google Scholar
• Peteraf MA (1993) The cornerstones of competitive advantage: A resource-based view. Strategic Management J. 14(3):179–191.Google Scholar
• Rajan R, Servaes H, Zingales L (2000) The cost of diversity: The diversification discount and inefficient investment. J. Finance 55(1):35–80.Crossref, Google Scholar
• Rumelt RP (1991) How much does industry matter? Strategic Management J. 12(3):167–185.Crossref, Google Scholar
• Sakhartov AV, Folta TB (2014) Resource relatedness, redeployability, and firm value. Strategic Management J. 35(12):1781–1797.Crossref, Google Scholar
• Scharfstein DS, Stein JC (2000) The dark side of internal capital markets: Divisional rent‐seeking and inefficient investment. J. Finance 55(6):2537–2564.Crossref, Google Scholar
• Schmidt J, Keil T (2013) What makes a resource valuable? Identifying the drivers of firm-idiosyncratic resource value. Acad. Management Rev. 38(2):206–228.Crossref, Google Scholar
• Sengul M, Costa AA, Gimeno J (2019) The allocation of capital within firms. Acad. Management Ann. 13(1):43–83.Crossref, Google Scholar
• Sharapov D, Kattuman P, Rodriguez D, Velazquez FJ (2021) Using the SHAPLEY value approach to variance decomposition in strategy research: Diversification, internationalization, and corporate group effects on affiliate profitability. Strategic Management J. 42(3):608–623.Crossref, Google Scholar
• Shin HH, Stulz RM (1998) Are internal capital markets efficient? Quart. J. Econom. 113(2):531–552.Crossref, Google Scholar
• Sirmon DG, Hitt MA, Ireland RD, Gilbert BA (2011) Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. J. Management 37(5):1390–1412.Crossref, Google Scholar
• Smeritschnig F, Muellner J, Nell PC, Weiss M (2021) Intra-industry diversification effects under firm-specific contingencies on the demand side. Long Range Planning 54(1):101992.Crossref, Google Scholar
• Stein JC (1997) Internal capital markets and the competition for corporate resources. J. Finance 52(1):111–133.Crossref, Google Scholar
• Teece DJ, Rumelt R, Dosi G, Winter S (1994) Understanding corporate coherence: Theory and evidence. J. Econom. Behav. Organ. 23(1):1–30.Crossref, Google Scholar
• Vanneste BS (2017) How much do industry, corporation, and business matter, really? A meta-analysis. Strategy Sci. 2(2):121–139.Link, Google Scholar
• Williamson OE (1975) Markets and Hierarchies (Free Press, New York).Google Scholar
• Wulf J (2009) Influence and inefficiency in the internal capital market. J. Econom. Behav. Organ. 72(1):305–321.Crossref, Google Scholar
• Xuan Y (2009) Empire-building or bridge-building? Evidence from new CEOs’ internal capital allocation decisions. Rev. Financial Stud. 22(12):4919–4948.Crossref, Google Scholar
• Zhou YM (2011) Synergy, coordination costs, and diversification choices. Strategic Management J. 32(6):624–639.Crossref, Google Scholar