IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v28y2007i3p211-225.html
   My bibliography  Save this article

Managerial ownership and corporate diversification: a longitudinal view

Author

Listed:
  • Maria Goranova
  • Todd M. Alessandri
  • Pamela Brandes
  • Ravi Dharwadkar

Abstract

Strategy and finance research suggests that managerial ownership results in increased incentive alignment and therefore is negatively related to corporate diversification. Using a longitudinal approach, we develop arguments to examine whether managerial ownership is associated with subsequent changes in diversification and/or if diversification is associated with subsequent changes in ownership. The results indicate that levels of managerial ownership in one time period are not associated with subsequent changes in corporate diversification, which raises incentive alignment questions. We also find that higher levels of corporate diversification are associated with changes in managerial ownership, which suggests support for the employment risk‐reduction perspective. This study provides important reasons to reassess the longitudinal implications of the managerial ownership‐corporate diversification link from both theoretical and managerial perspectives. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Maria Goranova & Todd M. Alessandri & Pamela Brandes & Ravi Dharwadkar, 2007. "Managerial ownership and corporate diversification: a longitudinal view," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 211-225, March.
  • Handle: RePEc:bla:stratm:v:28:y:2007:i:3:p:211-225
    DOI: 10.1002/smj.570
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.570
    Download Restriction: no

    File URL: https://libkey.io/10.1002/smj.570?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:28:y:2007:i:3:p:211-225. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.