M. V Shyam Kumar

M. V Shyam Kumar
Rensselaer Polytechnic Institute | RPI · Lally School of Management and Technology

About

27
Publications
6,956
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607
Citations
Citations since 2016
10 Research Items
373 Citations
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20162017201820192020202120220204060
Introduction
My research examines how firms define their boundaries and manage their product and market scope through decisions related to corporate diversification, alliances, and acquisitions. In addition, I also study how strategy and financial markets interact to impact areas such as innovation, and entrepreneurship. I examine these issues using both economic and behavioral lenses.

Publications

Publications (27)
Article
Research Summary We study the market performance of acquirers of targets that are public founder CEO firms. Using a switching regression model, we first estimate the unique value embedded in these targets due to founder presence, which we term “Founder Firm Premium.” We find Founder Firm Premium was positively associated with founder CEO departure...
Article
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Research summary: We examine the role of managerial job security in the adoption of innovative practices and structures. Utilizing state level antitakeover protections as an exogenous shock, we find that when managers are afforded greater job security through these protections, they exhibit a higher probability of initiating a Corporate Venture Cap...
Article
Full-text available
Prior research suggests that diversified firms are often unable to match resources to the market needs and opportunities of their divisions due to factors such as influence activities. In this research we propose that when such internal inefficiencies arise, diversified firms may form alliances to access resources externally to support their divisi...
Preprint
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W e examine the role of debt as a governance mechanism in balancing exploration and exploitation. We argue that while equity is conducive to uncertain exploration critical for innovation, debt provides countervailing incentives for engaging in exploitation by imposing cash flow obligations and the threat of bankruptcy. As a consequence, debt become...
Article
How do alliances lead to knowledge growth and learning for parent firms? Prior research focuses on knowledge inflows from a partner when a firm enters into an alliance. In this paper, we examine factors that enable firms to make better use of their own knowledge and capabilities as a consequence of alliances. To demonstrate the latter dimension of...
Chapter
Full-text available
This paper examines the effectiveness of joint ventures as real options by examining the causes of their termination. Using news reports and articles pertaining to a sample of 172 terminations the paper explores to what extent two causes occurred in the sample (a) ventures acquired by a parent firm to sustain a strategy of growth in a target market...
Article
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We model a process where decision makers search both for the problem to be solved as well as a solution by searching across two landscapes: problem formulation and problem solution landscapes. Our model considers that knowledge and learning gathered from one landscape can inform search in the second space and vice versa, as decision makers discover...
Article
Full-text available
We examine the role of debt as a governance mechanism in balancing exploration and exploitation. We argue that while equity is conducive to uncertain exploration critical for innovation, debt provides countervailing incentives for engaging in exploitation by imposing cash flow obligations and the threat of bankruptcy. As a consequence, debt becomes...
Article
Full-text available
The authors study the impact of institutional corporate social responsibility (CSR)—defined as CSR targeted at a borrowing firm's secondary stakeholders—on bank loans. Findings suggest that higher levels of institutional CSR are associated with lower levels of interest rates and loan spreads. In addition, institutional CSR also tempers the positive...
Article
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We study the relationship between the stock market's reaction to a prior acquisition and the risk associated with a subsequent acquisition. Using a sample of 823 acquisitions over the period 1990–2006 we find that acquirers buy increasingly volatile targets both as the abnormal dollar gains from the previous acquisition announcement increase, and a...
Chapter
We propose that in addition to its resources and capabilities, a firm's capital structure and financial health will act as an important determinant of its attractiveness as an alliance partner. Alliances with leveraged firms are prone to unplanned termination due to financial distress, which puts at risk the value embedded in the collaboration. As...
Article
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Movie sequels, a type of brand extension, are prevalent in today’s motion picture industry. Prior literature on brand extensions supports the intuition that attaching established brand names (e.g., titles of box-office hits) to new products decreases advertising costs. We counter this intuition and examine factors that may increase advertising cost...
Article
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We explore the proposition that parametric interdependence makes learning-by-doing a nondeterministic, path-dependent process. The implications of our model challenge two conventional beliefs about the relationships between industrial structure, spillovers, and learning-by-doing. First, we challenge the belief that the monopolistic industrial struc...
Article
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We respond to the comments raised by Nielsen (2012) in his commentary essay on Cui and Kumar (2012). While concurring with Nielsen's (2012) observations regarding appropriate level of measurement and the importance of relational aspects of JVs, our response elaborates on how these issues play a role in a research program adopting a multilevel appro...
Article
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I develop the thesis that in related diversified firms, the core business (in my analysis, the largest business) may provide benefits such as scope economies to a related segment, but it may also exert power and constrain the segment to act in its interests in various internal and external transactions. This enables the core business to shift produ...
Article
We provide theory and evidence regarding the signaling effects of joint venture (JV) announcements. We argue that when a firm characterized by information asymmetry with respect to the stock market announces a JV, the growth opportunities and the quality of resources of the partner provides a signal to investors about the true value of the firm. Ou...
Article
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Previous research has investigated various factors that influence joint venture (JV) termination. Yet the majority of studies do not distinguish between different types of JVs, particularly whether a JV is related or unrelated to the parent firm. Due to their inherent differences, related and unrelated JVs are likely to evolve distinctly, and their...
Article
Full-text available
A framework is developed outlining how production knowledge and capabilities influence firm boundaries by impacting the transaction costs of markets and hierarchies. A central implication of the framework is that at lower levels of these capabilities the transaction costs of markets decline at a faster rate than the costs of hierarchy, while at hig...
Article
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Are joint ventures (JVs) characterized mainly by cooperative behavior or noncooperative behavior? In this research, we address this question by examining the interrelationship between the values created for two partners when they announce a JV. We argue that, on average, if cooperative behavior and common benefits are more influential than noncoope...
Article
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I examine why there are differences in wealth gains between firms when they announce a joint venture (JV). Building on transaction cost economics and the resource-based view, I argue that, because JVs often involve incomplete contracts, differences in wealth gains arise due to resource appropriation and private benefits. As a result, two factors be...
Article
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We examine the relationship between growth along the product and international dimension in the short run. We argue that while the presence of fungible intangible resources and economies of scope may create opportunities for a firm to expand along both dimensions, the effect of short- run constraints may lead to a trade-off and a negative associati...
Article
In this research we address the following questions (1) Do joint ventures (JVs) create value for both parent firms in the dyad? (2) How is the total value created in the venture influenced by resources and capabilities of the two parent firms? In addressing these questions our objective is to provide added insight into the performance of JVs by shi...
Article
I examine the causes of asymmetric wealth gains (instances where one partner gains and the other partner loses) and the extent of these gains in joint ventures. I argue that asymmetric gains arise as the common benefits created by the venture are offset by the negative wealth effects of resource appropriation for one parent. Using a sample of 412 j...
Article
Full-text available
This study examines the value created from acquiring and divesting a joint venture. Unlike previous research which focuses on parent firm factors, the study examines value in light of the reason behind the termination of the venture and the characteristics of the target market. Consistent with the real options view, the paper finds that ventures di...
Article
This paper extends previous theoretical explanations of diversification that build on economies of scope and transaction costs in input markets. We argue that since realizing the benefits of diversification often involves the acquisition of new knowledge (in addition to redeploying a firm's existing knowledge), a firm's absorptive capacity should a...

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