Roy L. Simerly

Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test

An ongoing argument in financial management has been how to craft a capital structure which maximizes shareholder wealth. This question has gained prominence within the strategic management field because of the apparent link between capital structure and the ability of firms to compete. By integrating models from organizational economics with the strategic management literature, we are able to theorize that a firm’s capital structure is influenced by environmental dynamism, and that the match between environmental dynamism and capital structure is associated with superior economic performance. Our large-scale empirical analyses provide supportive evidence for the proposition that competitive environments moderate the relationship between capital structure and economic performance. From a theoretical standpoint, these findings provide another link between capital structure and corporate strategy. More importantly, we are able to move the discussion beyond the limitations of financial risk and incorporate the strategy concept of decision making under uncertainty. For practical application, these findings offer informed advice for managers on how to craft a capital structure. Copyright

The moderating effect of environmental dynamism on the ownership and performance relationship

Agency theory posits a positive relationship between insider ownership and organizational performance. Past empirical studies examining this issue have not firmly established this relationship. The current study postulates and tests the moderating effect of environmental dynamism on the insider ownership and performance nexus. Implications and future research directions are considered.

The chief executive officer and corporate social performance: An interdisciplinary examination

This paper attempts to cross the disciplinary boundaries of strategic management and social issues management to demonstrate the relationship between managerial characteristics and corporate social performance (CSP). Drawing on studies in strategic leadership research we develop and test hypotheses about linkages between top management attributes and different levels of CSP. Our results add credence to the argument that organizations are a reflection of their top managers, and encourage further systematic research of the influence of key executives in developing and implementing socially responsible policies and programs.

Institutional Ownership, Corporate Social Performance, and Firms' Financial Performance

This study examined the relationship between institutional investors and corporate social performance. Using corporate social performance data from the Fortune database, we demonstrated that institutional investors do not influence the social orientation of corporations. Further, the data seem to indicate that institutional investors are myopic with respect to a corporations social position. However, there is support for the view that corporate social performance is an integral part of achieving a better match between an organization and the environment.

Linking Environmental Change to Strategic Response: Some Empirical Evidence from the U.S. Oil Industry

A longitudinal design was used to examine the effects of changes in both environmental uncertainty and resource dependence in the external environment on the change in strategic orientation of organizations in the oil industry, using revenue flows during three distinguishable phases of growth. The authors argue that the interactive effects of these two environmental variables yield more meaningful results than either variable observed separately. Implications of the study are discussed, along with recommendations for research.

AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN CORPORATE SOCIAL PERFORMANCE AND FIRMS' DIVERSIFICATION

This paper extends research on corporate social performance by examining the relationship between extent of product diversification and corporate social performance. Findings indicate that firms which are highly diversified perform poorly on a measure of corporate social performance and that firms which maintain a more related set of business activities perform better on the same measure. Implications of the findings are discussed.

A Contingency Study of the Relationship between Strategic Groups and Performance

Summarized in this study is a demonstration in 162 firms that selected strategic types are related to specific performance objectives. The findings are consistent among strategy groups and between high and low performing firms. This supports an argument that research into the relationship between strategy and performance must consider the performance objectives of the strategy under consideration.

WHAT ARE STRATEGIC DECISIONS: THEORETICAL ISSUES AND EMPIRICAL EVIDENCE

This paper contrasts two theoretical views of strategic decisions, general and situational. We discuss the conceptual, substantive, and methodological issues associated with these two views and report the results of an empirical analysis using survey data, which was aimed at providing some evidence regarding the validity of these two views. Despite the wealth of theoretical support for the situational view, our research shows that the general view of strategic decision seems to be dominant in management practice.