search query: @indexterm CONGLOMERATE COMPANIES / total: 223
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| Author: | Hellwig, M. F. Laux, C. Muller, H. M. |
| Title: | Conglomeration: Good, Bad, or Unavoidable? |
| Journal: | Schmalenbach Business Review
2002 : 1, p. 55-78 |
| Index terms: | CONGLOMERATE COMPANIES COMPANIES ANALYTICAL REVIEW COMPARATIVE RESEARCH |
| Language: | eng |
| Abstract: | Corporate finance and investment theory are undergoing substantial changes, away from the traditional paradigm, in which each firm has a single project and a single owner/manager, and toward a richer, more complex setting in which firms have multiple projects and multiple managers. The different managers are coordinated by headquarters, an agent to whom owners have delegated authority and whose interests may or may not coincide with those of the firm's owners. This shift in focus has generated a host of new questions. The authors answer the following questions: what guides the allocation of funds inside firms; is the resulting allocation more efficient than the allocation via external capital markets. |
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