Complexity and Analyst Following of Multinational Firms

Grant, Julia; Bricker, Robert J.; Fogarty, Timothy J.; Previts, Gary John

doi:10.2139/ssrn.220421

Cited by 7 publications

(8 citation statements)

References 15 publications

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“…However, firm size alone is a controversial measure of complexity, as a firm may increase in size yet not increase the diversity of their product line and markets. Grant et al. (2000) measured business complexity with the metrics of the number of lines of business and the number of geographical regions in which firms operated.…”

Section: Measures Of Business Complexitymentioning

confidence: 99%

Managing complexity in modern farming*

Kingwell¹

2011

Aus J Agri & Res Econ

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Modern farming in Australia is no longer simple. Farms are large, multi-enterprise businesses underpinned by expensive capital investments, changing production technologies, volatile markets and social challenges. The complexity of modern broadacre farming leads to the question: what is the nature of the relationship between farm business complexity and farm profitability? This study uses bioeconomic farm modelling and employs eight measures of complexity to examine the profitability and complexity of a wide range of broadacre farming systems in Australia. Rank order correlations between farm profitability and each measure of complexity show inconsistent relationships, although the most profitable farming systems are found to be reasonably complex on several criteria. Among the set of highly profitable systems are found some characterised by less complexity. A commonly acknowledged feature of farm business complexity is the annual workload of the farmer, yet the trade-off between farm profit and this workload is found not to be large. A case is outlined where the farmer's annual hours worked could be reduced by 9 per cent for a 3 per cent reduction in farm profit. If farmers' workloads are proving problematic now, and in the future, then agricultural R&D, service delivery and policy development will need to focus more on being highly attractive to increasingly time-poor farm managers.

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Section: Measures Of Business Complexitymentioning

confidence: 99%

Managing complexity in modern farming*

Kingwell¹

2011

Aus J Agri & Res Econ

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“…Relevant, but different, is the literature and work in the measurement of business firm complexity or operational complexity. For example, Grant et al, (2000) define "operational complexity in terms of its lines of business and geographic operations regions, considered separately, jointly, and interactively" and use it to consider how such complexity is associated with equity analyst following. They classify firms according to operating segments, a unit of measure that recognizes the link between a firm's geographic and business line structures.…”

Section: Introductionmentioning

confidence: 99%

The Intrafirm Complexity of Systemically Important Financial Institutions

et al. 2015

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“…For example, the Basel Committee on Bank Supervision highlights three aspects of a firm's balance sheet for determining complexity, each with a 1 / 15 weight (i.e., 6 2 / 3 percent): (1) notional amount of OTC derivatives, 2trading and available-for-sale securities, (3) level 3 assets. Other measures have been proposed, such as the number of subsidiaries (Carmassi and Herring, 2013), the number of operating segments (Grant et al, 2000), or concentration of activities (Cetorelli and Goldberg, 2014) but all are positively related to size.…”

Section: Characterizing Firms' Organizational Structurementioning

confidence: 99%