We study how refocusing affects the performance of multi-business firms. Using hedge fund firms that closed funds during the 2007-2009 financial crisis, we find evidence that refocusing taxes a firm’s organization by creating corporate adjustment costs in the short-term and destroying synergies between business units in the long-term.
|Original language||English (US)|
|State||Published - 2017|
|Event||77th Annual Meeting of the Academy of Management, AOM 2017 - Atlanta, United States|
Duration: Aug 4 2017 → Aug 8 2017
|Other||77th Annual Meeting of the Academy of Management, AOM 2017|
|Period||8/4/17 → 8/8/17|