Deregulation, strategic choice, risk and financial performance

Article Abstract:

Research was conducted to investigate government deregulation in terms of its impact on strategic choice, financial performance and risk in the US banking industry. Regulatory data were collected through telephone interviews with bank officials from 583 bank holding companies, and were later verified through mailed questionnaires. Data were analyzed using a path analytic model. The findings showed that deregulation directly and indirectly affected return on assets (ROA) and bankers' risk, which were used as measures of financial performance. Bankers' risk was also found to be positively correlated with ROA, but negatively correlated with regulatory scope and regulatory incrementalism. As expected, the evidence showed that regulatory scope and incrementalism affected the five strategic choice variables studied, but surprisingly, this influence was found to be quite limited.

DEPOSITORY INSTITUTIONS, Banking industry, Risk (Economics), Deregulation

---

Strategic groups: a cognitive perspective

Article Abstract:

Strategic group research is extended beyond secondary and financial data through a cognitive perspective. A strategic group is defined as a cluster of firms within the same industry who make similar strategic decisions. Empirical support for a relationship between firm profitability and strategic groups is difficult to obtain. However, research from strategic and organization theory and cognitive psychology indicate that managerial perceptions of similarities and differences between themselves and their competitors and among the latter influence strategic planning and action. Chicago banking data bear out the existence of shared perceptions of group structure and support the potential of cognitive analysis of strategic groups for a better understanding of competitive positioning.

Industrial cooperation

---

In the eyes of the beholder: conceptualizations of relatedness held by the managers of large diversified firms

Article Abstract:

Nearly 200 chief executive officers of large diversified corporations are surveyed to examine their perceptions of relatedness among their firms' many business units. The findings indicate that managers' conceptualizations of relatedness is a multidimensional construct and that the issue is more complex than previously believed. The results suggest that CEOs define relatedness based on product-market similarities across their organizations' portfolios of businesses, such as having the same customers, raw materials, manufacturing processes and distribution network. However, managers also perceive relatedness in terms of differentiation, such as a common emphasis on brand names, product design, industrial research and new product development.

Conglomerate corporations, Chief executive officers, Diversification in industry, Industrial diversification

Similar abstracts:

• Abstracts: Diversification strategy and internationalization: implications for MNE performance. Product and international diversification among Japanese multinational firms
• Abstracts: Does the standard make sense? FRED 1 - reporting financial performance
• Abstracts: The role of budgets in organizations facing strategic change: an exploratory study. Fabricating budgets: a study of the production of management budgeting in the National Health Service
• Abstracts: Audit regulation - one year on. The audit register: an interpretive muddle. Counting the cost of audit regulation
• Abstracts: Incorporation of auditing practices: some legal aspects. Taking an ethical lead. Auditor liability consultation underway

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.