We study a sample of diversified firms that alter their organizational structure by divesting an entire business segment, primarily through asset sales. These firms experience a substantial reduction in the diversification discount after the divestiture. Investment in the firm’s ongoing segments is more sensitive to their imputed market to book ratio. We show that the efficiency of segment inve...

There are two typical sub-processes in bank production– deposit generation and loan generation. Aiming to open the black box of input-output production of banks, and provide comprehensive and accurate assessment on the efficiency of each stage, this paper proposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the US-NSBM may be promi...

Electrocardiograms (ECG), McFee vectorcardiograms (VCG), and ventricular activation data were collected from 25 anesthetized dogs before, immediately after, and 4 weeks after surgically induced discrete left anterior divisional block. Left anterior divisional block resulted in minor ECG changes: small S waves developed in leads II, HI, and aVF and the QRS complex was prolonged 5-15 msec (mean 9...

Operation Management is an important and complex task for a divisional structured organization, especially when the divisions are distributed geographically. In most cases, such organizations didn’t not urge all of it’s divisions to use an integrated information system at the very beginning. But with the development and the expanding of the organization, they sometimes found themselves in the t...

Capacity Management, Decentralization, and Internal Pricing This paper studies the acquisition and subsequent utilization of production capacity in a decentralized firm comprised of multiple divisions. A central issue in our analysis is whether one or several of the divisions should be structured as investment centers with comprehensive responsibility for acquiring new capacity assets and maint...

In this paper we explain the apparent ”diversification discount” of conglomerates without assuming inefficient-cross subsidisation through internal capital markets. Instead we assume that an internal capital market efficiently redistributes scare resources across a conglomerate’s divisions between successive production periods. The need for redistribution arises from the fact that resources may...

In this paper, we consider a dynamic model in which a firm’s headquarters (HQ) allocates the limited capital budget into two divisions which are privately informed of their investment opportunities, having an overstating incentive. The vertical communication between HQ and each division is based on a contract, while the horizontal communication between divisions is collusive to overstate. The m...