Diversification or splitting - An analysis based on principal-agent theory

被引：0
|
作者：
Luo, Liang-Zhong [1 ]
机构：
[1] E China Univ Polit & Law, Sch Business, Shanghai 201620, Peoples R China
来源：
Research on Organizational Innovation - 2007 Proceedings of International Conference on Enterprise Engineering and Management Innovation | 2007年
关键词：
diversification; specialization; divestment; spin-off; principal-agent theory;
D O I：
暂无
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
By inserting the variable of the exactness of corporate valuation into the classic model of Principal-agent Theory, this paper, on the bases of the interaction of the variables of the veraciousness of corporate valuation, managerial incentives and operational risks, explores the deep-seated reasons for changes in corporate structures, and draws the conclusion that the divestment of the subsidiary is beneficial to shareholders when the parent corporate is undervalued and the relation between the parent and the subsidiary is disordered, or vice versa. This conclusion is consistent with the motives of many divestiture cases in reality.
引用
收藏
页码：1300 / 1305
页数：6
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