De-Diversification Activities of German Corporations From 1988 To 2002: Perspectives from Agency and Management Fashion Theory

Alexander T. Nicolai and Thomas W. Thomas

Schmalenbach Business Review (sbr), 2006, vol. 58, issue 1, 56-80

Abstract: In the past, many countries have witnessed de-diversification waves. In this paper we illustrate that the same phenomenon can be observed in Germany. We discuss different theoretical explanations for the occurrence of de-diversification: the predominant agency theory approach and the less common neo-institutionalist/management fashion theory. We present data on 360 divestitures by German corporations between 1988 and 2002 and obtain additional data from a literature database. The results show that management fashions can influence the impact of capital markets. We suggest strengthening the link between finance theory and research in strategy and organization.

Keywords: Agency Theory; Capital Markets; Diversification; Management Fashion; Neo-Institutionalism; Refocusing; Strategic Management (search for similar items in EconPapers)
JEL-codes: D21 D23 G34 M10 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sbr:abstra:v:58:y:2006:i:1:p:56-80

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