Agency theory and the influence of equity ownership structure on corporate diversification strategies

We articulate the agency theory view of managerial decision making and its implications for corporate diversification strategies. From agency theory, we generate testable predictions for the relation between equity ownership structure and diversification strategies and review the existing evidence on this relation. On balance, the evidence strongly supports the view that ownership structure influences corporate strategy. Copyright © 1999 John Wiley & Sons, Ltd.     

Empowerment Through Participation? Conceptual Explorations and A Case Study

Economic inequalities have been increasing between and within nations, regions and cities, but questions of redistribution have to some extent been displaced by those of recognition, empowerment and diversity in urban and regional inquiry and policy. A conceptual framework drawing upon Nancy Fraser's and Iris Marion Young's ideas about economic and cultural injustice is proposed for evaluating local empowerment initiatives, which is then drawn upon to explore the nature and effectiveness of participation with reference to one specific New Deal For Communities partnership scheme in the London Borough of Hackney, Shoreditch – Our Way, concerned with regeneration. Our findings suggest that while participation is certainly a necessary condition for moving towards a more egalitarian society, current policies are valuable but limited in terms of the degree of representation and the extent of control. They are part of an affirmative agenda – that is, they tackle symptoms but not causes of deprivation. We conclude that if long‐term remedies are desired, then transformative solutions which address both economic and political injustice are necessary. Les inégalités économiques se sont creusées entre et au sein des nations, régions et villes mais, dans les études et dans les politiques urbaines et régionales, les questions de redistribution ont, dans une certaine mesure, été supplantées par celles de reconnaissance, empowerment et diversité. L'article propose un cadre conceptuel inspiré des idées de Nancy Fraser et Iris Marion Young sur l'injustice économique et culturelle afin d'évaluer les initiatives locales d'empowerment. Cette évaluation permet ensuite d'explorer la nature et l'efficacité de la participation en évoquant un programme de régénération en partenariat de type New Deal for Communities, à Shoreditch, dans la banlieue londonienne de Hackney (Our Way). Les résultats suggèrent que, si la participation est bien sûr une condition nécessaire pour aller vers une société plus égalitaire, les politiques actuelles, quoique précieuses, sont limitées en termes de degré de représentation et niveau de maîtrise. Elles s'inscrivent dans une démarche antidiscriminatoire en traitant les symptômes, mais pas les causes de l'appauvrissement. En conclusion, si l'on souhaite des solutions à long terme, il faut des transformations remédiant aux injustices tant économiques que politiques.     

Profit and Price Effects of Multi‐species Individual Transferable Quotas

Regulators in many countries have adopted individual transferable quotas as a means of dealing with the open access problem inherent in fisheries. Using individual vessel data prior to and after the introduction of ITQs in Canada's multi‐species Scotia‐Fundy mobile gear fishery, the paper uses an index number profit decomposition to compare vessel performance over time and across individual vessels. The approach allows us to undertake both an ex post evaluation of short‐term impacts of ITQs and an ex ante evaluation of longer term impacts. With respect to short‐term impacts, the results suggest that larger vessels have benefited the most from the introduction of ITQs, but that all vessels have enjoyed increases in the prices received for those fish species that are included in the quota program. With respect to longer‐term impacts, the transferability provisions of the ITQ program have encouraged exit and more efficient operations to prevail.     

Leverage and investment in diversified firms

Within diversified firms, the negative impact of leverage on investment is significantly greater for high q than for low q segments and significantly greater for non-core than for core segments. This differs substantially from focused firms and is consistent with the view that diversified firms allocate a disproportionate share of their debt service burden to their higher q and non-core segments. We also find that, among low-growth firms, the positive relation between leverage and firm value is significantly weaker in diversified firms than in focused firms. We conclude that the disciplinary benefits of debt are partially offset by the additional managerial discretion in allocating debt service that is provided by the diversified organizational structure.     

Evaluation of a client care delivery model, Part 2: Variability in client outcomes in community home nursing

Using similar variables, Part II explores variation in client outcomes such as OMAHA knowledge, behavior, and SF-36 scores. Medical and nursing diagnoses explained large variations in client outcomes. Clients cared for by degree-prepared nurses improved knowledge and behavior scores. Unanticipated case complexity was negatively associated with client outcome even with nursing intervention. The study revealed that "for every unit increase in assignment of baccalaureate-prepared nurses, clients will on average demonstrate an 80% greater likelihood of improvement in knowledge scores and a 120% greater likelihood of improvement in behavior scores in relation to their health condition at discharge." This two-part study has offered insight into the controllable variables influencing the cost and quality of home care services.