Divestiture and deregulation of public enterprises: the Mexican case

Includes bibliography

The divestiture of TELMEX

Includes bibliography

Australian divestiture activity: An examination of gains to sell-off announcements

This study examines the source of gains associated with Australian divestiture activity, defined as a voluntary modification of the firm's productive assets by a sell-off of a complete operating division or wholly-owned subsidiary of the divesting firm The sell-off announcement produces positive average abnormal returns of 1.15% over the two-day announcement period. We conclude that the gains arise predominantly from divestitures that have a strategic focus as demonstrated by, first, the divested unit is unrelated to the firm's core activities (a strategic divestiture), second, the significance of the strategic variable in explaining the positive market reaction in regression analysis, and third, the finding of more significant results where the intended use of proceeds of the sell-off is for strategic purposes.

Esporte contemporâneo: um novo templo do capital monopolista

Esta pesquisa teve por objetivo abrir uma discussão sobre o papel do esporte contemporâneo junto ao processo de alienação humana em tempos de domínio do capitalismo monopolista e do fortalecimento da ideologia dominante. Para tal, no primeiro capítulo, analisou-se as principais transformações vividas historicamente pelo capitalismo com a intenção de identificar o impacto do capitalismo monopolista sobre o novo ordenamento da humanidade. No segundo capítulo, demonstrou-se como o esporte contemporâneo constituiu-se como uma instituição burguesa, socialmente determinada e integrada ao conjunto de normas, ideias e estratégias inerentes ao modo de produção capitalista, participando do processo de mascaramento da questão social. Destaca-se neste capítulo o uso de fontes documentais que demonstraram como o esporte contemporâneo tem ocupado lugar estratégico tanto junto à produção da ideologia dominante, quanto junto ao controle da queda da taxa de lucro. Identificou-se que sob tais condições o esporte contemporâneo compõe os processos compensatórios frente à queda tendencial da taxa de lucro e, ao mesmo tempo, integra-se ao processo de alienação humana, tendo por maior expressão a sua materialização sob a forma dos megaeventos esportivos. Neste ponto, a pesquisa concentra-se na análise dos megaeventos esportivos no Brasil e na criação das políticas do esporte, desde o primeiro governo Lula da Silva até os dias atuais. Identificou-se que os projetos de desenvolvimento do esporte no país, no período em tela, têm participado do processo de gerenciamento da crise do capital e do refluxo das lutas dos trabalhadores. O último capítulo abordou as particularidades que envolvem a ideologia pós-moderna, tendo por objetivo identificar as relações desta com fenômeno esportivo. Constatou-se que, em tempos de domínio do capitalismo monopolista e de suas políticas neoliberais, as contradições que aguçam o processo de alienação sob o qual encontra-se a classe trabalhadora de todo o mundo, coloca a humanidade em um novo patamar de alienação, ainda mais brutal e desumanizador. Nesta conjuntura, o esporte contemporâneo destaca-se por ser funcional tanto ao mercado globalizado, quanto ao projeto imperialista, impondo-se como instrumento da contenção de conflitos em nome da tolerância e da paz no mundo. A presente pesquisa pôde concluir que as condições impostas pela fase monopolista do capitalismo ocultam a natureza dialética do esporte transforma-o num instrumento eficiente ao projeto dominante de incremento da alienação humana. O esporte, sob a forma assumida na contemporaneidade, não contribui para o avanço da consciência da classe trabalhadora, pois vem colaborando para adiamento do projeto de emancipação da humanidade. Projeto este que só será produzido pela organização consciente da classe trabalhadora em busca da superação do modo de produção capitalista.

The spin-off of Sonae Capital

The purpose of this project is to study the spin-off of Sonae Capital, which took place in January 2008. Taking the form of a case study, this project is divided between the case narrative and a teaching note. I study the background and motivation of the transaction, along with its outcome. With the available information at the time of the case, I value Sonae Capital at the date of the spin-off and describe a possible trading strategy involving both the spun-off and the demerged companies. Finally, I conclude that the transaction was more beneficial for the parent company, Sonae SGPS, and that it did not follow the typical outperformance pattern observed in other spin-offs.

Corporate aging and investment decisions

Paper I: Corporate aging and internal resource allocation Abstract Various observers argue that established firms are at a disadvantage in pursuing new growth opportunities. In this paper, we provide systematic evidence that established firms allocate fewer resources to high-growth lines of business. However, we find no evidence of inefficient resource allocation in established firms. Redirecting resources from high-growth to low-growth lines of business does not result in lower profitability. Also, resource allocation towards new growth opportunities does not increase when managers of established firms are exposed to takeover and product market threats. Rather, it seems that conservative resource allocation strategies are driven by pressures to meet investors’ expectations. Our empirical evidence, thus, favors the hypothesis that established firms wisely choose to allocate fewer resources to new growth opportunities as external pressures force them to focus on efficiency rather than novelty (Holmström 1989). Paper II: Corporate aging and asset sales Abstract This paper asks whether divestitures are motivated by strategic considerations about the scope of the firm’s activities. Limited managerial capacity implies that exploiting core competences becomes comparatively more attractive than exploring new growth opportunities as firms mature. Divestitures help stablished firms free management time and increase the focus on core competences. The testable implication of this attention hypothesis is that established firms are the main sellers of assets, that their divestiture activity increases when managerial capacity is scarcer, that they sell non-core activities, and that they return the divestiture proceeds to the providers of capital instead of reinvesting them in the firm. We find strong empirical support for these predictions. Paper III: Corporate aging and lobbying expenditures Abstract Creative destruction forces constantly challenge established firms, especially in competitive markets. This paper asks whether corporate lobbying is a competitive weapon of established firms to counteract the decline in rents over time. We find a statistically and economically significant positive relation between firm age and lobbying expenditures. Moreover, the documented age-effect is weaker when firms have unique products or operate in concentrated product markets. To address endogeneity, we use industry distress as an exogenous nonlegislative shock to future rents and show that established firms are relatively more likely to lobby when in distress. Finally, we provide empirical evidence that corporate lobbying efforts by established firms forestall the creative destruction process. In sum, our findings suggest that corporate lobbying is a competitive weapon of established firms to retain profitability in competitive environments.

Restructuring In The Hospitality Industry

In her dialogue entitled - Restructuring in the Hospitality Industry - Elisa S. Moncarz, Associate Professor, the School of Hospitality Management at Florida International University, intends for you to know the following: “Recent years have seen a proliferation of restructurings of major American corporations creating an extremely important issue that has affected U.S. business. This article discusses restructuring issues in the hospitality industry, focusing attention on its causes and motivations, as well as on its benefits and perils. The author considers the impact of restructuring on investors and management while examining recent restructurings involving hospitality firms.” In defining the concept of restructuring, Associate Professor Moncarz informs you, “Restructuring entails the implementation of fundamental and comprehensive modification of a company's operational and/or financial structure.” “It has, indeed, become fashionable to take a company apart and put it back together in a different form,” the author says. Additionally, Moncarz refers to a Wall Street Journal study, dated August 1985, which reveals that nearly half the large American corporations were, or were soon to be restructured in the 1984/85 time frame. There are several distinct types of restructurings and the author wants you to be aware of some of them. “…threats of takeover attempts, the larger part of all restructuring have been initiated willingly in order to expand or divest a company's line of business (i.e., operational restructurings) or redirect its finances (i.e., financial restructurings),” the author reveals. “Two principal types of operational restructurings are mergers and acquisitions [M&A], and divestitures [disposing of unwanted units or assets],” Moncarz further defines the concepts of expansion and divestiture. The author explains several types of financial restructuring sketches used in the hospitality industry, including stock re-purchasing, debt issuances and redemptions, swapping debt for equity, and effective theories of realigning debt through extending loans and/or revising terms. To expand their businesses, Moncarz makes anecdotal reference to several major food and beverage corporations that have successfully employed operational restructuring principles. The author wades into the shallow end of the hostile takeover pool by explaining some of the corporate restructuring concepts used to repel that aggressive technique. Walt Disney Company completely redesigned their entire upper level management structure in a successful effort to thwart a hostile takeover bid by corporate raider Saul P. Steinberg, Moncarz informs. To close, the author touches on leveraged buyouts [LBOs], and stock repurchases to divest unwanted divisions and immobilize hostile takeover attempts. A lengthy table of - Selected Restructurings in the Hospitality Industry [1982 to date of article] – is also included.

Value creation in a reregulated market : Divestments, firms and dynamic processes

This thesis makes use of the unique reregulation of pharmaceutical monopoly in Sweden to critically examine intraindustry firm heterogeneity. It contributes to existing divestiture research as it studies the dynamism in between reconfigurations of value constellations and its effects on value creation of divested pharmacies. Because the findings showed that the predominant theory of intraindustry firm heterogeneity could not explain firm performance, the value constellation concept was applied as it captured the phenomena. A patterned finding informed how reconfigurations of value constellations in a reregulated market characterized by strict rules, regulations, and high competition did not generate additional value for firms on short term. My study unveils that value creation is hampered in situations where rules and regulations significantly affect firms’ ability to reconfigure their value constellations. The key practical implication is an alternative perspective on fundamental aspects of the reregulation and how policy-makers may impede firm performance and the intended creation of new value for not only firms but for society as a whole.