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VD-skiftets inverkan på diversifieringsstrategi – en longitudinell studie av svenska börsnoterade företag

Bråtenius, Linnea ; Emilsson, Henrik and Skoghagen, Elin LU (2013) FEKH19 20122
Department of Business Administration
Abstract (Swedish)
Examensarbetets titel: VD-skiftets inverkan på diversifieringsstrategi – en longitudinell studie av svenska börsnoterade företag

Seminariedatum: 2013-01-18

Ämne/kurs: FEKH19, Examensarbete kandidatnivå i Strategic Management, 15 högskolepoäng

Författare: Linnea Bråtenius, Henrik Emilsson, Elin Skoghagen

Handledare: Matts Kärreman

Fem nyckelord: Diversifieringsstrategi, Rumelts klassificeringssystem, VD-incitament, VD-byte, Agentproblematik

Syfte: Att undersöka om det finns ett samband mellan VD-byte och förändring i diversifieringsstrategi.

Metod: Med utgångspunkt i en deduktiv ansats utfördes en longitudinell studie som speglar 83 svenska börsnoterade företag över tjugo års tid, från 1992 till 2011. Sekundärdata i... (More)
Examensarbetets titel: VD-skiftets inverkan på diversifieringsstrategi – en longitudinell studie av svenska börsnoterade företag

Seminariedatum: 2013-01-18

Ämne/kurs: FEKH19, Examensarbete kandidatnivå i Strategic Management, 15 högskolepoäng

Författare: Linnea Bråtenius, Henrik Emilsson, Elin Skoghagen

Handledare: Matts Kärreman

Fem nyckelord: Diversifieringsstrategi, Rumelts klassificeringssystem, VD-incitament, VD-byte, Agentproblematik

Syfte: Att undersöka om det finns ett samband mellan VD-byte och förändring i diversifieringsstrategi.

Metod: Med utgångspunkt i en deduktiv ansats utfördes en longitudinell studie som speglar 83 svenska börsnoterade företag över tjugo års tid, från 1992 till 2011. Sekundärdata i form av årsredovisningar samlades in för att mäta grad av produktdiversifiering och identifiera aktuell VD under företagens samtliga år. Därefter jämfördes variabeln förändring i diversifieringsgrad med variabeln VD-byte för att identifiera ett eventuellt samband dem emellan inom en femårsperiod.

Teoretiska perspektiv: I teorin finns ett antal argument om VD:ns personliga incitament för att diversifiera sitt företag (Besanko, Dranove, Shanley & Schaefer, 2010; Aggarwal & Samwick, 2003; Rose & Shepard, 1997). Dessa incitament skiljer sig från företagets fördelar med diversifiering ur ett aktieägarperspektiv (Besanko et al., 2010; Brush, 1996). Det föreligger därmed en tänkbar risk för agentproblematik om VD:n inte handlar i linje med aktieägarnas önskemål. Litteratur pekar även på att VD:n utför diversifieringsförändringar under sina tidiga år på posten (Baeten, Barker & Musteen, 2005; Hambrick & Fukutomi, 1991). Därmed vill vi pröva om denna problematik existerar i verkligheten och i sådant fall i samband med VD-skifte.

Empiri: De 83 företag som vår undersökning grundats på är listade på Large Cap på Nasdaq OMX Nordic Stockholm någon gång mellan 1992 och 2011. Dessa företag är intressanta som underlag då deras storlek kan fånga räckvidden av en möjlig diversifiering eftersom de har ekonomiska förutsättningar att förändra diversifieringsstrategi. Dessutom har de skyldighet att redovisa sin verksamhet i form av offentliga årsredovisningar, vilket gör den sökta informationen tillgänglig för oss.

Resultat: Studien visade med en 95-procentig signifikansnivå att inget samband mellan variablerna existerade. (Less)
Abstract
Title: How CEO turnover affects diversification strategy – a longitudinal study of Swedish listed companies

Seminar date: 2013-01-18

Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points

Authors: Linnea Bråtenius, Henrik Emilsson, Elin Skoghagen

Advisor: Matts Kärreman

Key words: Diversification strategy, Rumelt’s Classification Scheme, CEO incentives, CEO turnover, Agency problems

Purpose: This thesis aims to investigate whether there is a correlation between CEO turnover and changes in diversification strategy.

Methodology: Based on a deductive approach a longitudinal study was executed, reflecting 83 Swedish listed companies over a twenty year time period, from 1992... (More)
Title: How CEO turnover affects diversification strategy – a longitudinal study of Swedish listed companies

Seminar date: 2013-01-18

Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points

Authors: Linnea Bråtenius, Henrik Emilsson, Elin Skoghagen

Advisor: Matts Kärreman

Key words: Diversification strategy, Rumelt’s Classification Scheme, CEO incentives, CEO turnover, Agency problems

Purpose: This thesis aims to investigate whether there is a correlation between CEO turnover and changes in diversification strategy.

Methodology: Based on a deductive approach a longitudinal study was executed, reflecting 83 Swedish listed companies over a twenty year time period, from 1992 to 2011. Secondary data was collected from annual reports to measure company degree of product diversification, as well as identifying the current CEO each year. We then compared the variable change in diversification degree with the variable CEO turnover to identify a possible relationship between them within a five-year period.

Theoretical perspectives: There are a number of theoretical arguments explaining the CEO’s personal incentives to diversify his business (Besanko, Dranove, Shanley & Schaefer, 2010; Aggarwal & Samwick, 2003; Rose & Shepard, 1997). These incentives differ from actual benefits of the company from a shareholder perspective (Besanko et al., 2010; Brush, 1996). Thus there exists a potential risk regarding agency problems related to CEO and shareholder differences of interests. Based on the research of Baeten et al. (2005) and Hambrick and Fukutomi (1991) CEO’s will implement changes of diversification strategy during the initial years of employment. Therefore we aim to examine whether this problem exists in reality and in such case if there is any connection to CEO turnover.

Empirical foundation: The 83 companies targeted in the thesis were listed at the Large Cap Nasdaq OMX Nordic Stockholm exchange sometime between 1992 and 2011. These companies were chosen based on their size, which enables capturing the scope of a possible change in diversification strategy, since they have sufficient economic resources. The fact that they are listed also makes relevant information available to us, since they by law are obligated to report their activities in annual reports.

Conclusion: With a 95 percent level of significance there is no correlation between the two variables tested. (Less)
Please use this url to cite or link to this publication:
author
Bråtenius, Linnea ; Emilsson, Henrik and Skoghagen, Elin LU
supervisor
organization
alternative title
How CEO turnover affects diversification strategy – a longitudinal study of Swedish listed companies
course
FEKH19 20122
year
type
M2 - Bachelor Degree
subject
keywords
Diversifieringsstrategi, Rumelts klassificeringssystem, VD-incitament, VD-byte, Agentproblematik
language
Swedish
id
3460545
date added to LUP
2013-02-12 13:24:45
date last changed
2013-02-12 13:24:45
@misc{3460545,
  abstract     = {Title: How CEO turnover affects diversification strategy – a longitudinal study of Swedish listed companies

Seminar date: 2013-01-18

Course: FEKH19, Degree project Undergraduate level, Strategic Management, 15 University Credits Points

Authors: Linnea Bråtenius, Henrik Emilsson, Elin Skoghagen

Advisor: Matts Kärreman

Key words: Diversification strategy, Rumelt’s Classification Scheme, CEO incentives, CEO turnover, Agency problems

Purpose: This thesis aims to investigate whether there is a correlation between CEO turnover and changes in diversification strategy.

Methodology: Based on a deductive approach a longitudinal study was executed, reflecting 83 Swedish listed companies over a twenty year time period, from 1992 to 2011. Secondary data was collected from annual reports to measure company degree of product diversification, as well as identifying the current CEO each year. We then compared the variable change in diversification degree with the variable CEO turnover to identify a possible relationship between them within a five-year period.

Theoretical perspectives: There are a number of theoretical arguments explaining the CEO’s personal incentives to diversify his business (Besanko, Dranove, Shanley & Schaefer, 2010; Aggarwal & Samwick, 2003; Rose & Shepard, 1997). These incentives differ from actual benefits of the company from a shareholder perspective (Besanko et al., 2010; Brush, 1996). Thus there exists a potential risk regarding agency problems related to CEO and shareholder differences of interests. Based on the research of Baeten et al. (2005) and Hambrick and Fukutomi (1991) CEO’s will implement changes of diversification strategy during the initial years of employment. Therefore we aim to examine whether this problem exists in reality and in such case if there is any connection to CEO turnover. 

Empirical foundation: The 83 companies targeted in the thesis were listed at the Large Cap Nasdaq OMX Nordic Stockholm exchange sometime between 1992 and 2011. These companies were chosen based on their size, which enables capturing the scope of a possible change in diversification strategy, since they have sufficient economic resources. The fact that they are listed also makes relevant information available to us, since they by law are obligated to report their activities in annual reports.

Conclusion: With a 95 percent level of significance there is no correlation between the two variables tested.},
  author       = {Bråtenius, Linnea and Emilsson, Henrik and Skoghagen, Elin},
  keyword      = {Diversifieringsstrategi,Rumelts klassificeringssystem,VD-incitament,VD-byte,Agentproblematik},
  language     = {swe},
  note         = {Student Paper},
  title        = {VD-skiftets inverkan på diversifieringsstrategi – en longitudinell studie av svenska börsnoterade företag},
  year         = {2013},
}