TY - JOUR
T1 - Ownership structure, contingent-fit, and business-unit performance
T2 - A research model and empirical evidence
AU - Jermias, Johnny
AU - Gani, Lindawati
PY - 2005
Y1 - 2005
N2 - This study investigates the influence of contingent-fit on the relationship between ownership structure and business-unit performance. We predict that contingent-fit between business strategy and its contextual variables will have a positive relationship with business-unit performance. We also predict that widely-held companies will perform better than their closely-held counterparts but that the magnitude of the performance differential will decrease with the increasing level of contingent-fit. Overall, the results are consistent with our predictions. We found that contingent-fit is positively related to business-unit performance and widely-held business-units perform better than their closely-held counterparts. The performance advantage, however, was mitigated by the level of contingent-fit.
AB - This study investigates the influence of contingent-fit on the relationship between ownership structure and business-unit performance. We predict that contingent-fit between business strategy and its contextual variables will have a positive relationship with business-unit performance. We also predict that widely-held companies will perform better than their closely-held counterparts but that the magnitude of the performance differential will decrease with the increasing level of contingent-fit. Overall, the results are consistent with our predictions. We found that contingent-fit is positively related to business-unit performance and widely-held business-units perform better than their closely-held counterparts. The performance advantage, however, was mitigated by the level of contingent-fit.
KW - Business-unit performance
KW - Contingency theory
KW - Ownership structure
KW - Strategic orientation
UR - http://www.scopus.com/inward/record.url?scp=17844408440&partnerID=8YFLogxK
U2 - 10.1016/j.intacc.2005.01.004
DO - 10.1016/j.intacc.2005.01.004
M3 - Article
AN - SCOPUS:17844408440
SN - 0020-7063
VL - 40
SP - 65
EP - 85
JO - International Journal of Accounting
JF - International Journal of Accounting
IS - 1
ER -