Ownership structure and corporate strategy: One question viewed from two different worlds

Peter J. Lane, Albert A. Cannella, Michael H. Lubatkin

Research output: Contribution to journalArticle

48 Scopus citations

Abstract

In their response to our paper, Amihud and Lev (1999) and Denis, Denis, and Sarin (1999) claim that disciplinary differences don't matter and that methods and evidence should speak for themselves. In contrast, we argue that important differences exist between financial economics and strategic management, leading to differing beliefs, norms, methods, and interpretations of empirical results. Using a strategic management perspective to review the evidence presented by Amihud and Lev in their earlier study (1981) and in their and Denis et al.'s critiques of our work (1999), we find no reason to revise our original conclusion: there is little theoretical or empirical basis for believing that monitoring by a firm's principals influences its diversification strategy and acquisition decisions.

Original languageEnglish (US)
Pages (from-to)1077-1086
Number of pages10
JournalStrategic Management Journal
Volume20
Issue number11
StatePublished - Nov 1 1999

Keywords

  • Agency theory
  • Diversification
  • Management theory
  • Mergers
  • Scientific disciplines

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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    Lane, P. J., Cannella, A. A., & Lubatkin, M. H. (1999). Ownership structure and corporate strategy: One question viewed from two different worlds. Strategic Management Journal, 20(11), 1077-1086.