Closure and divestiture by foreign entrants: the impact of entry and post-entry strategies

Mata, José; Portugal, Pedro

doi:10.1002/(sici)1097-0266(200005)21:5<549::aid-smj94>3.0.co;2-f

Cited by 169 publications

(131 citation statements)

References 42 publications

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“…In contrast to Mitchell (1994), Chang and Singh (1999) find support for this argumentation. Mata and Portugal (2000), analyzing the entry and post-entry strategies of more than 1,000 foreign-owned firms in Portugal from 1983 and 1989, corroborate this result.…”

Section: Performancesupporting

confidence: 62%

“…A popular distinction is that between sell-off and dissolution (e.g., Harrigan, 1982;Mitchell, 1994). Sell-off means that a business is sold as an individual operating unit to another owner (Mata & Portugal, 2000;Villalonga & McGahan, 2005). Under the heading of sell-off, there are several sub-types of exit styles: for example, spin-offs, buyouts, carve-outs, and asset sales.…”

Section: Defining the Domainmentioning

confidence: 99%

“…Dissolution involves the shut-down of entire businesses (Mitchell, 1994;Chang & Singh, 1999;Mata & Portugal, 2000). In contrast to the aforementioned exit styles, the entity in question does not get a new owner but disappears.…”

Section: Defining the Domainmentioning

confidence: 99%

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Thirty Years After Michael E. Porter: What Do We Know About Business Exit?

Decker

Mellewigt

2007

AMP

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Executive OverviewAlthough a business exit is an important corporate change initiative, the buyer's side seems to be more appealing to management researchers than the seller's because acquisitions imply growth, i.e., success. Yet from an optimistic viewpoint, business exit can effectively create value for the selling company. In this paper we attempt to bring the relevance of the seller's side back into our consciousness by asking: What do we know about business exit? We start our exploration with Porter (1976), focusing on literature that investigates the antecedents of, barriers to, and outcomes of business exit. We also include studies from related fields such as finance and economics. 1 Through this research we determine three clusters of findings: factors promoting business exit, exit barriers, and exit outcomes. Overall, it is the intention of this paper to highlight the importance of business exit for research and practice. Knowing what we know about business exits and their high financial value we should bear in mind that exit need not mean failure but a new beginning for a corporation.B usiness exit is an asset restructuring activity involving a diversified firm's divestiture of one of its businesses, such as Intel's abandonment of its DRAM business (Burgelman, 1996). Interest in this topic can be traced back to publications that represent milestones in economic research such as Bain (1956), who established the concept of barriers to entry, Caves ' (1964) analysis of the American industry, and the seminal article on exit barriers by Porter published in California Management Review in 1976, which helped raise the interest in business exit among a broad audience. Data from the U.S. illustrate that business exit continues to be relevant (cf. Figure 1). In the U.S., business services, real estate, and software were the most active divesting industries in 2005. A recent study by the consulting company Accenture highlights the growing relevance of business exits for years to come and predicts that " [f]or the next years, many companies will give far more thought to divestitures than they did in the late 1990s" (Anslinger, Jenk, & Chanmugam, 2003).Although a business exit is an important corporate change initiative, the buyer's side seems to be more appealing to management researchers than the seller's because acquisitions imply growth, i.e., success. This preference for the "success" side can be seen at the industry level as well. Managers, for example, may resist business exit because it is afflicted with the stigma of failure and is often seen as a result of poor corporate management. The reluctance of managers to admit that their organization or at least parts of it are in trouble is evidence of their substantial personal preoccupation with growth and their large personal costs in case of exit (Gilson, 1989). Yet from an optimistic point of view, business exit can effectively create value for the selling company. Indeed, the stigma certainly wasn't a factor for former GE CEO Jack Welch. Under his leadersh...

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Section: Performancesupporting

confidence: 62%

Section: Defining the Domainmentioning

confidence: 99%

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Thirty Years After Michael E. Porter: What Do We Know About Business Exit?

Decker

Mellewigt

2007

AMP

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“…A indústria química (11,2%), do papel e artes gráficas (10,2%), dos produtos minerais não metálicos (10,1%) e a indústria da Quadro III -Evolução da estrutura sectorial do emprego industrial em Portugal, 1990Portugal, -2000. madeira e do mobiliário (7,4%) constituíam-se como os outros ramos principais dentro da indústria.…”

Section: Evolução Recente Do Emprego E Do Produto Industrial Em unclassified

“…Todavia, a dimiQuadro IV -Evolução da estrutura do produto industrial, por ramo, em Portugal, 1990Portugal, -2000. nuição do peso dos têxteis no emprego e da química no produto permitiram que outras actividades aumentassem o seu peso relativo na estrutura industrial, como as indústrias de calçado e couro, madeira e mobiliário e a fileira metálica.…”

Section: Evolução Recente Do Emprego E Do Produto Industrial Em unclassified

Desinvestimento industrial e as regiões portuguesas. Reflexos da mudança no espaço económico internacional

Vale¹,

Dias²

2012

FIT

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Resumo -A mobilidade crescente do capital, especialmente de origem estrangeira, tem vindo a revelar-se preocupante para a economia das regiões e para a vida das comunidades. Até certo ponto, o investimento é uma opção estratégica das empresas idêntica ao desinvestimento, embora os seus impactos sejam necessariamente diferentes. O desinvestimento em certas actividades é mesmo considerado como uma condição necessária para a mudança estrutural da base económica das regiões. No entanto, o desfasamento temporal entre fluxos de destruição e criação de actividades origina, frequentemente, problemas econó-micos e sociais nos territórios.O artigo inicia-se com uma discussão acerca da problemática do desinvestimento. Em seguida, efectua-se uma análise da evolução recente do emprego e do produto industrial em Portugal. O ponto seguinte trata do estudo dos fluxos de criação e destruição de emprego, numa óptica sectorial e territorial, procurando identificar e explicar a diferenciação das trajectórias regionais. Finalmente, apontam-se casos específicos de desinvestimento estrangeiro, ocorridos recentemente em Portugal, que ilustram não só a perspectiva micro-económica do desinvestimento mas também as mudanças em curso em cadeias de valor globais, levando--nos a equacionar o (re)posicionamento do país na divisão internacional do trabalho. often critical to the economies of regions and local community life. To a certain extent, divestment is, in essence, another strategic option of firms and it may not be necessarily negative for regions. Still, the impacts are not identical to investment. In economic analysis, divestment in certain activities is seen as necessary to achieve regional economic restructuring. However, the time gap between the creation and destruction of activities frequently causes social and economic problems in regions. Palavras-chaveStarting with a conceptual framework of divestment, we then analyse the recent evolution of industrial employment and product in order to provide a macro-economic framework for the analysis of employment creation and destruction flows that follows. This analysis has a sectorial and regional perspective aimed at identifying different paths by regions. Finally, specific cases of foreign divestment, which have recently occurred in Portugal, are discussed, illustrating not only a micro-economic perspective of divestment but also the changes in the global value chains that point to a (re)positioning of the country in the international division of labour.

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Analysis of the determinants of survival for the Russian commercial banking industry: A new approach

Orbe

Núñez‐Antón

2010

Appl. Stochastic Models Bus. Ind.

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We propose the study of the relevant factors for the survival of Russian commercial banks during the transition period. The accelerated development of the Russian commercial banking industry after the banking reform caused high rates of entry followed by a period of high rates of exit. As a consequence, many banks had to exit the market without refunding their deposits. Therefore, both for the banks and for the banks' depositors, it is of interest to identify the relevant factors that motivate the exit or the closing of the bank. We propose a different methodology based on penalized weighted least squares that represents a very general, flexible and innovative approach for this type of analysis. That is, the proposed methodology does not require the assumptions of a probability distribution for the variable under study or of any covariate parametric functional form for the covariate whose effect on the survival variable we wish to address.

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Closure and divestiture by foreign entrants: the impact of entry and post-entry strategies

Cited by 169 publications

References 42 publications

Thirty Years After Michael E. Porter: What Do We Know About Business Exit?

Thirty Years After Michael E. Porter: What Do We Know About Business Exit?

Desinvestimento industrial e as regiões portuguesas. Reflexos da mudança no espaço económico internacional

Analysis of the determinants of survival for the Russian commercial banking industry: A new approach

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