Leveraging Synergies Versus Resource Redeployment: Sales Growth and Variance in Product Portfolios of Diversified Firms

2021 ◽  
Author(s):  
Marco S. Giarratana ◽  
Martina Pasquini ◽  
Juan Santaló
Keyword(s):  
Sales Growth ◽  
Diversified Firms ◽  
Product Portfolios

The Micro and Macro of Managerial Beliefs

2020 ◽  
Author(s):  
Jose Maria Barrero
Keyword(s):  
Rational Expectations ◽  
Asset Price ◽  
Heterogeneous Firms ◽  
Adjustment Costs ◽  
Consumer Welfare ◽  
Sales Growth ◽  
Firm Level ◽  
Managerial Decisions ◽  
Managerial Beliefs ◽  
Growth Volatility

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.

The Effects of Socially Responsible Activities on the Management Performance of Internationally Diversified Firms

2020 ◽  
Vol 24 (5) ◽  
pp. 35-54
Author(s):  
Sang-Bong An ◽  
Tae-Won Kang
Keyword(s):  
Socially Responsible ◽  
Management Performance ◽  
Diversified Firms

The Valuation Discount of Diversified Firms in Australia

2001 ◽  
Author(s):  
Grant A. Fleming ◽  
Barry R. Oliver ◽  
Steven Skourakis
Keyword(s):  
Diversified Firms

Recent developments in China’s biopharmaceutical industry (2012-2017)

2019 ◽  
Vol 10 (3) ◽  
pp. 686-707
Author(s):  
Marcus Conlé
Keyword(s):  
Product Innovation ◽  
Academic Research ◽  
Domestic Market ◽  
Growth Strategy ◽  
Future Research ◽  
Biopharmaceutical Industry ◽  
Content Type ◽  
Drug Regulator ◽  
Recent Developments ◽  
Product Portfolios

Purpose The paper aims to take stock of China’s recent biopharmaceutical industry development by analyzing product innovation and changes in the firms’ product portfolios during the five-year period between 2012 and 2017. Design/methodology/approach The paper introduces a classification of biopharmaceutical products. By applying the classification to the product data of China’s drug regulator, the CFDA, it becomes possible to trace the developments within the sector by looking at changes in the number of firms within each subgroup and changes in the number of subgroups in which each firm is involved. The classification allows an evaluation of the latest product innovation achievements. Findings The paper demonstrates a mild shakeout of firms in the relatively long-existing domestic market segments, a trend toward more specialized product portfolios and an enduring prevalence of innovation strategies aimed at exploiting relatively unpopulated domestic market niches instead of pioneering entirely new products. Especially the capability of upgrading to second-generation protein therapeutics has become a key criterion for separating the wheat and the chaff in China’s domestic sector. The paper moreover points out the relevance of acquisitions as a corporate growth strategy. Research limitations/implications The research does not consider complementary indicators, product pipelines in particular. Future research should compare patterns across emerging economies. Originality/value The paper is unique in using the CFDA database for systematic academic research on (bio)pharmaceutical innovation and in introducing a biopharmaceutical product classification to trace innovative activities and changes in corporate product portfolios over time.

Wanner delivers double-digit sales growth

2019 ◽  
Vol 2019 (7) ◽  
pp. 4
Keyword(s):  
Sales Growth ◽  
Double Digit

Do corporate diversification and earnings management practices affect capital structure?

2015 ◽  
Vol 7 (4) ◽  
pp. 360-378 ◽  
Author(s):  
Ranjitha Ajay ◽  
R Madhumathi
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Management Practices ◽  
Negative Relationship ◽  
Corporate Diversification ◽  
Content Type ◽  
Diversification Strategies ◽  
Market Product ◽  
Diversified Firms ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the impact of earnings management on capital structure across firm diversification strategies. Design/methodology/approach – The study focuses on firms operating in the manufacturing sector (diversified and focused). Panel data methodology compares diversification strategies and identifies the impact of diversification strategy with earnings management practices on capital structure decision. Findings – International and product diversified firms have lower levels of leverage than focused firms in their capital structure. Asset-based earnings management is positive for diversified (market/product) firms. Earnings management using discretionary expenditure (project based) is found to be higher for market diversified but product-focused firms. Earning smoothing method is found to be significant for focused firms and shows a negative relationship with capital structure. Originality/value – This study offers an insight into the relationship between corporate diversification, earnings management and capital structure decisions of manufacturing firms. The results provide an important contribution to accounting and strategy literature. A distinction is made between market- and product-diversified firms and influence of earnings management practices (asset-based, project-based and earnings smoothing (ESM)) on capital structure decisions. Diversified firms (market/product) tend to have lower levels of leverage than focused firms and earnings management practices within firm groups significantly influence the capital structure decisions.

scholarly journals Buffering and enabling: The impact of interlocking political ties on firm survival and sales growth

2014 ◽  
Vol 36 (11) ◽  
pp. 1615-1636 ◽  
Author(s):  
Weiting Zheng ◽  
Kulwant Singh ◽  
Will Mitchell
Keyword(s):  
Firm Survival ◽  
Sales Growth ◽  
Political Ties ◽  
The Impact

scholarly journals Determinants of Firm Performance: Evidence from Romanian Listed Companies

2016 ◽  
Vol 9 (1) ◽  
pp. 53-69 ◽  
Author(s):  
Sebastian Lazăr
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Value Added ◽  
Listed Companies ◽  
Sales Growth ◽  
Fixed Effects Model ◽  
Resource Based View ◽  
Firm Profitability ◽  
Negative Effect ◽  
Positive Effect

AbstractThe paper investigates firm-specific determinants of firm profitability for Romanian listed companies over the 2000-2011 period within the framework of resource based view of the firm. The results show that tangibles, leverage, size and labour intensity have negative effect on firm performance, while sales growth and value added have a positive effect. The results prove robust when introducing two-way fixed effects model and industry year effects model (in order to simultaneously account for specific industry characteristics and time effects).

Impact of online channel use on customer revenues and costs to serve: Considering product portfolios and self-selection

2012 ◽  
Vol 29 (2) ◽  
pp. 192-201 ◽  
Author(s):  
Sonja Gensler ◽  
Peter Leeflang ◽  
Bernd Skiera
Keyword(s):  
Self Selection ◽  
Online Channel ◽  
Product Portfolios
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