000			01912nam a22001817a 4500
999			_c513338 _d513338
008			200211b ||||| |||| 00| 0 eng d
100			_aJung, Jiwook _916031
245			_aLearning not to diversity: The transformation of graduate business education and the decline of diversifying acquisitions
260			_bAdministrative Science Quarterly
300			_a64(2), Jun, 2019: p.337-369.
520			_aOnce a preferred strategy, corporate diversification into disparate lines of business has gradually declined in the U.S. over the past several decades. We argue that changes that occurred in a closely related domain—graduate business education—are important in understanding variation in de-diversification across firms. Building on a historical account of the transformation of business education, we explain how the rise of financial economics and agency-theoretic logic in business education changed students’ views about diversification. Nearly 20 years later, these MBA graduates rose to top decision-making positions and put the brakes on diversification. Using data on CEOs who ran 640 large U.S. corporations from 1985 to 2015, we show that CEOs who earned an MBA before the 1970s actively pursued diversification, whereas the next cohort of CEOs, who had been exposed to agency-theoretic logic in financial economics, refrained from it. We also demonstrate that the degree of managerial discretion moderated the effect of the CEO’s MBA education. Our study shows that institutional change in one domain (i.e., business education) contributed to change in another domain (i.e., corporate diversification), albeit with a considerable time lag. - Reproduced.
650			_aManagement - Study and Teaching _916032
650			_aCorporation - United States _916033
700			_aShin, Taekjin _916034
773			_aAdministrative Science Quarterly
906			_aBusiness schools
942			_cAR