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The strategy‐shareholder value relationship: Testing temporal stability across market cycles
16 references·13 citing·46 second hop
The strategy‐shareholder value relationship: Testing temporal stability across market cycles (1991)The strategy‐shareholder value relationsh…Strategic control systems and relative r&d investment in large multiproduct firms (1988)Strategic control systems and…Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis (1988)Returns to bidding firms in m…Performance differences among strategic group members (1988)Performance differences among…ENVIRONMENTS AS MODERATORS OF THE RELATIONSHIP BETWEEN STRATEGY AND PERFORMANCE. (1986)ENVIRONMENTS AS MODERATORS OF…An exploratory study of strategic acquisition factors relating to performance (1985)An exploratory study of strat…Evidence on the capitalized value of merger activity for acquiring firms (1983)Evidence on the capitalized v…Diversification Strategy, Accounting Determined Risk, and Accounting Determined Return (1982)Diversification Strategy, Acc…Risk Reduction as a Managerial Motive for Conglomerate Mergers (1981)Risk Reduction as a Manageria…Principles of Corporate Finance. (1981)Principles of Corporate Finan…STABILITY TESTS FOR ALPHAS AND BETAS OVER BULL AND BEAR MARKET CONDITIONS (1977)STABILITY TESTS FOR ALPHAS AN…A critique of the asset pricing theory's tests Part I: On past and potential testability of the theory (1977)A critique of the asset prici…BETAS AND THEIR REGRESSION TENDENCIES (1975)BETAS AND THEIR REGRESSION TE…THE EFFECT OF THE FIRM'S CAPITAL STRUCTURE ON THE SYSTEMATIC RISK OF COMMON STOCKS (1972)THE EFFECT OF THE FIRM'S CAPI…ON THE ASSESSMENT OF RISK (1971)ON THE ASSESSMENT OF RISKRisk, The Pricing of Capital Assets, and The Evaluation of Investment Portfolios (1969)Risk, The Pricing of Capital …THE PERFORMANCE OF MUTUAL FUNDS IN THE PERIOD 1945–1964 (1968)THE PERFORMANCE OF MUTUAL FUN…Supply chain finance and firm diversification: Evidence from China (2022)Supply chain finance and firm…Are Female CEOs Really More Risk Averse? Examining Economic Downturn and Other-Orientation (2021)Are Female CEOs Really More R…Diversification Strategy, Ownership Structure, and Financial Crisis: Performance of Chinese Private Firms (2018)Diversification Strategy, Own…Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy (2017)Redirecting Research Efforts …Incentive Alignment, Control, and the Issue of Misleading Financial Disclosures (2007)Incentive Alignment, Control,…\nCorporate Strategy and Shareholder Value during Decline and Turnaround (2007)\nCorporate Strategy and Shar…The impact of market cycle on the performance of Singapore acquirers (2004)The impact of market cycle on…Agency costs and corporate control devices in the Turkish manufacturing industry (2000)Agency costs and corporate co…Are Tradeoffs Inherent in Diversification Moves? A Simultaneous Model for Type of Diversification and Mode of Expansion Decisions (1999)Are Tradeoffs Inherent in Div…Merger Strategies and Shareholder Value During Times of Relaxed Antitrust Enforcement: The Case of Large Mergers During the 1980s (1997)Merger Strategies and Shareho…The effects of leveraged buyouts on corporate growth and diversification in large firms (1995)The effects of leveraged buyo…Construct validity of some unweighted product‐count diversification measures (1993)Construct validity of some un…MEASUREMENT OF FIRM DIVERSIFICATION: IS IT ROBUST? (1992)MEASUREMENT OF FIRM DIVERSIFI…The Pricing of Options and Corporate Liabilities (1973)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Agency Problems and the Theory of the Firm (1980)Agency Theory: An Assessment and Review (1989)Managerial incentives and risk-taking☆ (2005)Who makes acquisitions? CEO overconfidence and the market's reaction☆ (2008)The capital asset pricing model: Some empirical tests (1972)Risk, Return, and Equilibrium: Empirical Tests (1973)Studies in the Theory of Capital Markets. (1973)Co-Skewness and Capital Asset Pricing (1980)An Empirical Investigation of the Possibility of Stochastic Systematic Risk in the Market Model (1984)Optimization Methods in Finance (2006)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets (1965)The relationship between return and market value of common stocks (1981)Efficient Capital Markets: II (1991)Multifactor Explanations of Asset Pricing Anomalies (1996)Efficient Capital Markets: A Review of Theory and Empirical Work (1970)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)Markets and Hierarchies: Analysis and Antitrust Implications. (1976)Explaining interfirm cooperation and performance: toward a reconciliation of predictions from the resource-based view and organizational economics (1999)Resource complementarity in business combinations: Extending the logic to organizational alliances (2001)Why resource‐based theory's model of profit appropriation must incorporate a stakeholder perspective (2018)The Nature of the Firm (1937)An Evolutionary Theory of Economic Change (1983)An Evolutionary Theory of Economic Change. (1983)Output flexibility—A competitive advantage for small firms (1991)Schumpeter's ghost: Is hypercompetition making the best of times shorter? (2005)Firm, strategic group, and industry influences on performance (2006)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)RISK, UNCERTAINTY, AND DIVERGENCE OF OPINION (1977)The stochastic behavior of common stock variances Value, leverage and interest rate effects (1982)Of Tournaments and Temptations: An Analysis of Managerial Incentives in the Mutual Fund Industry (1996)The cost of capital, corporation finance and the theory of investment (2008)The Behavior of Stock-Market Prices (1965)Noise Trader Risk in Financial Markets (1990)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Performance Hypothesis Testing with the Sharpe and Treynor Measures (1981)Time-varying conditional covariances in tests of asset pricing models (1989)Measuring abnormal performance (1992)The option pricing model and the risk factor of stock (1976)Risk measurement when shares are subject to infrequent trading (1979)Foundations of Portfolio Theory (1991)The Capital Structure Puzzle (1984)The Determinants of Capital Structure Choice (1988)The theory and practice of corporate finance: evidence from the field (2001)
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References

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  • 1981Principles of Corporate Finance.3,634 cited
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  • 1981Risk Reduction as a Managerial Motive for Conglomerate Mergers2,775 cited
  • 1972THE EFFECT OF THE FIRM'S CAPITAL STRUCTURE ON THE SYSTEMATIC RISK OF COMMON STOCKS1,130 cited
  • 1969Risk, The Pricing of Capital Assets, and The Evaluation of Investment Portfolios941 cited
  • 1971ON THE ASSESSMENT OF RISK721 cited
  • 1988Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis563 cited
  • 1975BETAS AND THEIR REGRESSION TENDENCIES548 cited
  • 1988Performance differences among strategic group members521 cited
  • 1988Strategic control systems and relative r&d investment in large multiproduct firms514 cited
  • 1983Evidence on the capitalized value of merger activity for acquiring firms388 cited
  • 1982Diversification Strategy, Accounting Determined Risk, and Accounting Determined Return377 cited
  • 1985An exploratory study of strategic acquisition factors relating to performance373 cited
  • 1986ENVIRONMENTS AS MODERATORS OF THE RELATIONSHIP BETWEEN STRATEGY AND PERFORMANCE.

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373 cited
  • 1977STABILITY TESTS FOR ALPHAS AND BETAS OVER BULL AND BEAR MARKET CONDITIONS314 cited
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    • 2017Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy127 cited
    • 1992MEASUREMENT OF FIRM DIVERSIFICATION: IS IT ROBUST?107 cited
    • 1993Construct validity of some unweighted product‐count diversification measures100 cited
    • 2007Incentive Alignment, Control, and the Issue of Misleading Financial Disclosures83 cited
    • 1999Are Tradeoffs Inherent in Diversification Moves? A Simultaneous Model for Type of Diversification and Mode of Expansion Decisions82 cited
    • 1995The effects of leveraged buyouts on corporate growth and diversification in large firms78 cited
    • 1997Merger Strategies and Shareholder Value During Times of Relaxed Antitrust Enforcement: The Case of Large Mergers During the 1980s75 cited
    • 2021Are Female CEOs Really More Risk Averse? Examining Economic Downturn and Other-Orientation45 cited
    • 2004The impact of market cycle on the performance of Singapore acquirers41 cited
    • 2000Agency costs and corporate control devices in the Turkish manufacturing industry37 cited
    • 2007\nCorporate Strategy and Shareholder Value during Decline and Turnaround34 cited
    • 2022Supply chain finance and firm diversification: Evidence from China30 cited
    • 2018Diversification Strategy, Ownership Structure, and Financial Crisis: Performance of Chinese Private Firms26 cited