Search results

1 – 10 of 116
To view the access options for this content please click here
Book part
Publication date: 4 August 2017

Andrew Inkpen and Kannan Ramaswamy

This chapter examines the oil and gas industry and the efficacy of vertical integration strategies. Using multiple theoretical lenses ranging from the resource-based view…

Abstract

This chapter examines the oil and gas industry and the efficacy of vertical integration strategies. Using multiple theoretical lenses ranging from the resource-based view, transactions costs, and parenting perspective, the chapter considers different arguments associated with vertical integration. The 2011 breakup of ConocoPhillips and its global value chain helps address the question of which strategy is best – integrated or nonintegrated. We provide several conclusions about the structure of integration and value chains within the oil and gas industry. First, vertical integration based on the physical transfer of products between value chain activities will generate little firm advantage in the form of classical integration benefits, such as control over input quality or speed to market. Second, competing across the industry value chain as a hedge or strategy against industry cyclicality is not theoretically defensible. Third, pure play industry specialists can create value through management focus, agility, and, transparency for investors. Fourth, firms that compete across a wide range of industry value chain activities can create value-adding corporate strategies if they are able to leverage knowledge and assets across different industry sectors.

Details

Breaking up the Global Value Chain
Type: Book
ISBN: 978-1-78743-071-6

Keywords

To view the access options for this content please click here
Case study
Publication date: 1 May 2007

Kanalis A. Ockree, James Martin and Richard A. Moellenberndt

This is an illustrative case analyzing shareholder and accounting outcomes and legal issues resulting from a merger of two major publicly traded companies. In today's…

Abstract

This is an illustrative case analyzing shareholder and accounting outcomes and legal issues resulting from a merger of two major publicly traded companies. In today's business world, the “urge to merge” is tempered by heightened shareholder activism. In response to this activism, boards must proceed with care when negotiating mergers. Challenges to mergers that appear to be in the shareholders' best interest occur often. As is the case here, shareholders and their well funded legal representatives, seek damages for alleged bad decisions. Conoco Oil and Phillips Petroleum announced their intention to merge in November 2001. At that time the cost of gasoline spiraled ever upward and large oil firms put heavy competitive pressure on smaller oil producer/refiners. The merger described as a “merger of equals”, intimated that neither Conoco nor Phillips shareholders would receive a financial advantage (or disadvantage) over other merging shareholders following the completion of the merger. Immediately following the announcement, Michael Iorio, a Conoco shareholder, filed a lawsuit, claiming damages to Conoco shareholders from the merger of the two firms.

Details

The CASE Journal, vol. 3 no. 2
Type: Case Study
ISSN: 1544-9106

To view the access options for this content please click here

Abstract

Details

Sustainability Assessment
Type: Book
ISBN: 978-1-78743-481-3

To view the access options for this content please click here
Article
Publication date: 14 September 2015

Andre Mollick and Khoa H Nguyen

The purpose of this is paper is to pay a closer look at the 2008-2009 financial crisis (and its aftermath) and analyzes stock returns of nine major US oil companies as…

Abstract

Purpose

The purpose of this is paper is to pay a closer look at the 2008-2009 financial crisis (and its aftermath) and analyzes stock returns of nine major US oil companies as well as the oil and gas sector under daily data from January 1992 to April 2012.

Design/methodology/approach

The authors adopt the arbitrage pricing theory model to examine the relationship between stock returns and their influences including oil price return, yield spreads, and US dollar index return. The authors also provide a test for structural changes in each regression model of return series to capture for multiple breaks. To examine the asymmetric effect of oil price returns on stock returns, the authors separate oil price returns series into two series: positive changes in oil price and negative changes in oil price.

Findings

The authors find stock returns of oil companies as well as the oil and gas sector are positively affected by oil prices and have stronger effects in the downward direction. Interestingly, The authors find the effects of oil price movements on stock returns increase over time. The authors examine the possibility that investors wishing to hedge against a weakening USD invest in US oil companies and find that more than half of these companies benefit from a weaker USD against the JPY, while all strongly benefit from a weaker USD against major currencies.

Originality/value

The authors employ daily data for two-decade period including the last global financial crisis. Due to the long-term period covered in this study, sequential Bai-Perron tests are used to detect structural breaks of stock return series. In addition, the data-dependent procedures result in good specifications throughout with white-noise processes in almost all cases.

Details

Managerial Finance, vol. 41 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Executive summary
Publication date: 26 April 2018

VENEZUELA: Legal developments may worsen oil crisis

Details

DOI: 10.1108/OXAN-ES233376

ISSN: 2633-304X

Keywords

Geographic
Topical
To view the access options for this content please click here
Article
Publication date: 1 November 2006

Fred Wenstøp and Arild Myrmel

The purpose is to propose a structure for corporate value statements, which is useful as an underlying organizing principle that makes them more comprehensible, and at the…

Abstract

Purpose

The purpose is to propose a structure for corporate value statements, which is useful as an underlying organizing principle that makes them more comprehensible, and at the same time identifies values that can serve as criteria for strategic decision‐making.

Design/methodology/approach

The main approach is theoretical development of value categories. It is followed up by an empirical investigation of value statements on corporate web pages to see if the proposed principles are applicable.

Findings

The paper proposes a comprehensive value system that consists of three main value categories juxtaposed on the same level: Core values prescribe the attitude and character of the organization. They are often found in sections on code of conduct, values statement, or credo. Protected values are protected through rules, standards and certificates. They are mostly found in sections concerning health, environment and safety. Created values are the values that stakeholders, including the shareholders, expect in return for their contributions to the firm. They are often found in sections on objectives and always in the annual report.

Research limitations/implications

The empirical research is limited to companies listed on two stock exchanges. Further research should include other types of organizations.

Practical implications

It is hoped that the proposed value system can contribute to making corporate value statements more comprehensible and useful for strategic decision‐making.

Originality/value

It is believed to be a new idea to propose a holistic value system for value communication that can incorporate all values.

Details

Management Research News, vol. 29 no. 11
Type: Research Article
ISSN: 0140-9174

Keywords

To view the access options for this content please click here
Executive summary
Publication date: 2 October 2018

EAST TIMOR: Gas field could raise Belt and Road allure

Details

DOI: 10.1108/OXAN-ES238881

ISSN: 2633-304X

Keywords

Geographic
Topical
To view the access options for this content please click here

Abstract

Details

Shipping Company Strategies
Type: Book
ISBN: 978-0-08-045806-9

To view the access options for this content please click here
Expert briefing
Publication date: 23 August 2018

Venezuela’s economic adjustment, announced on August 17 by President Nicolas Maduro, has met with international scepticism. There is little confidence that the…

Content available
Book part
Publication date: 10 October 2017

Cesar A. Poveda

Abstract

Details

Sustainability Assessment
Type: Book
ISBN: 978-1-78743-481-3

1 – 10 of 116