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Financial strategies of multinational firms in the world wine industry: An assessment

Author

Listed:
  • Alfredo Manuel Coelho

    (UMR Moisa, Montpellier, 2 Place Pierre Viala, 34060 Montpellier Cedex 02 France)

  • Jean-Louis Rastoin

    (Agro-Montpellier-UMR Moisa, Montpellier, 2 Place Pierre Viala, 34060 Montpellier Cedex 02 France)

Abstract

This work sheds light on the emergence of financialization in the wine industry by wine multinationals (MNEs). First, we suggest a conceptual framework to analyze MNEs' strategies in the world market. Second, by using a sample of major MNEs listed on stock markets, we focus on shareholder value sharing (dividends, stock buybacks). Our results demonstrate wine MNEs entered in a new era in which strategies are driven by attempts to maximize shareholder value through financialization. This entails restructuring operations and financial engineering. Finally, we discuss the implications of these strategies for industrial concentration. [EconLit classification: F230, G300]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 417-429, 2006.

Suggested Citation

  • Alfredo Manuel Coelho & Jean-Louis Rastoin, 2006. "Financial strategies of multinational firms in the world wine industry: An assessment," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 417-429.
    • Handle: RePEc:wly:agribz:v:22:y:2006:i:3:p:417-429
    DOI: 10.1002/agr.20095
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    References listed on IDEAS

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    1. Reuer, Jeffrey J. & Shen, Jung-Chin, 2004. "Sequential divestiture through initial public offerings," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 249-266, June.
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    Cited by:

    1. Figueiredo, Vítor & Franco, Mário, 2018. "Wine cooperatives as a form of social entrepreneurship: Empirical evidence about their impact on society," Land Use Policy, Elsevier, vol. 79(C), pages 812-821.

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