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De-Diversification Activities of German Corporations from 1988 to 2002: Perspectives from Agency and Management Fashion Theory

  • De-Diversification
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Schmalenbach Business Review Aims and scope

Abstract

In the past, many countries have witnessed de-diversification waves. In this paper we illustrate that the same phenomenon can be observed in Germany. We discuss different theoretical explanations for the occurrence of de-diversification: the predominant agency theory approach and the less common neo-institutionalist/management fashion theory. We present data on 360 divestitures by German corporations between 1988 and 2002 and obtain additional data from a literature database. The results show that management fashions can influence the impact of capital markets. We suggest strengthening the link between finance theory and research in strategy and organization.

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Authors and Affiliations

  1. University of Oldenburg, Ammerländer Heerstraße 114-118, D-26111, Oldenburg, Germany

    Alexander T. Nicolai (Professor of Business Administration, Chair of Entrepreneurship)

  2. Institute for Mergers & Acquisitions, Witten/Herdecke-University, Alfred-Herrhausen-Straße 50, D-58448, Witten, Germany

    Thomas W. Thomas

Authors
  1. Alexander T. Nicolai
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  2. Thomas W. Thomas
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Nicolai, A.T., Thomas, T.W. De-Diversification Activities of German Corporations from 1988 to 2002: Perspectives from Agency and Management Fashion Theory. Schmalenbach Bus Rev 58, 56–80 (2006). https://doi.org/10.1007/BF03396724

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  • DOI: https://doi.org/10.1007/BF03396724

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