Session 254

Capital Markets and Efficiency

Track O

Date: Tuesday, October 9, 2012

Track E

Time: 08:00 – 09:15

Paper

Room: Meeting Room 2.2


Session Chair:

  • Joanna Tochman Campbell, University of Cincinnati

Title: Searching under Earnings Pressure: Evidence from the U.S. M&A Market

Authors

  • Yu Zhang, China Europe International Business School

Abstract: This paper examines the effect of earnings pressure, or the pressure to meet or beat analysts’ earnings forecast consensus, on firms’ search behavior such as mergers and acquisitions. We argue that when firms face earnings pressure tend to use easier or less risky means such as guidance or accruals management, rather than more risky ones such as M&A. They tend to take less risky, more related M&As rather than more risky, unrelated ones. We also propose that these effects will be weaker when firms have met or beaten earnings forecasts for more prior periods, thus accumulating more constraints of using guidance or accruals management. Using the data from the U.S. M&A market, we found evidences supporting our predictions.

Title: To Grow or Not to Grow: The Medium Size as Strategic Option in International Markets

Authors

  • Alberto Pezzi, University of Rome III
  • Ottorino Morresi, University of Rome III

Abstract: We study shareholder value creation in the form of stock market reaction to announcements of internationalization strategies by medium-sized firms listed on European stock exchanges. We find that medium-sized listed firms in Europe are able to create value through their global diversification. These firms appear to successfully manage the issues related to internationalization. Value creation is present in all sample countries. British, Italian, Belgian and French firms show the best performance while Dutch, German and Spanish firms show the worst results. According to international literature, the value created is dependent on some firm-specific, deal-specific, industry-specific, and country-specific determinants.

Title: Who Really Matters and When: Director Attention to Stakeholder Issues

Authors

  • Joanna Tochman Campbell, University of Cincinnati
  • Chris Tuggle, University of Nebraska-Lincoln

Abstract: Two prominent theories present conflicting views of whose interests should be given priority in firm-level decisions. Agency theory argues that shareholders are the legal owners of the firm and thus hold primacy over any other stakeholder in the corporation. Stakeholder theory, however, proposes that managers need to devote attention to all of firm’s stakeholders, not just its shareholders. In this study, we integrate insights from the fields of management and corporate law to investigate whose issues, shareholders’ or stakeholders’, capture the majority of directors’ attention. Moreover, we show when the majority of board attention shifts from one group to another as a result of firm, industry, and macroeconomic factors.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 119: Strategic Leadership
Sun: 09:30 – 10:45
Session 120: Corporate Governance
Sun: 11:15 – 12:30
Session 122: Strategic Leadership and Corporate Governance Complementarities: Why we Are an IG
Sun: 15:15 – 16:30
Session 107: The Benefits of Experience: Vicarious and Otherwise
Mon: 08:00 – 09:15
Session 106: Why do Firms do Bad Things and What Do We Know about It?
Mon: 09:30 – 10:45
Session 103: Reputation: Organizational and Individual Dimensions
Mon: 13:30 – 14:45
Session 112: CEO and TMT Turnover: Firm Implications
Session 214: CEOs and Leadership
Mon: 16:30 – 17:45
Session 113: Large Shareholders are Doing it for Themselves
Tue: 08:00 – 09:15
Session 115: Board Member Characteristics and Board Diversity
Session 137: CEO Human Capital: Take a Little off the Top
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 111: Why Boards Look the Way They Do: Director Selection
Session 117: Heterogeneous Owner Types and their Influence
Tue: 14:15 – 15:30
Session 108: CEOs Matter, Don\'t They?
Session 116: Discretion and Compensation
Tue: 15:45 – 17:00
Session 114: Adoption of a Practice and its Implications
Tue: 17:30 – 18:45
Session 118: The TMT as a Unit
Session 215: CEO Personality and Characteristics Influencing Decision Making

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 270: New Frontiers in the Computational Approaches to Strategy and Organization
Sun: 09:30 – 10:45
Session 271: Competing for Innovation
Sun: 11:15 – 12:30
Session 272: Unified Theory of Industry Evolution
Sun: 15:15 – 16:30
Session 52: Networks and competition
Session 66: Competitive strategies in transition
Mon: 08:00 – 09:15
Session 55: Risk, uncertainty and competitive advantage
Session 64: Diverse strategies: Diversification and the evolution of competition
Mon: 09:30 – 10:45
Session 65: Resourceful competitors: Competitive strategies and the resource based view
Mon: 13:30 – 14:45
Session 54: The dynamics of dynamic capabilities
Mon: 16:30 – 17:45
Session 57: Finding your niche: Niche Strategies and Competitive Advantage
Session 245: Competitors, strategy, and competitive dynamics
Tue: 08:00 – 09:15
Session 56: Competitive dynamics meet competitive strategy
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 58: Innovation and competitive strategy
Tue: 14:15 – 15:30
Session 60: The sustainability of competitive advantage
Session 61: Value creation and value capture
Tue: 15:45 – 17:00
Session 62: Acquiring competitive success? Mergers and acquisitions
Tue: 17:30 – 18:45
Session 59: Tempus fugit? Competitive strategy over time


Strategic Management Society

Prague