Shareholder value and strategic action: A study of turnaround firms

This dissertation provides extensive empirical evidence--a large sample study over a long period--about the link between strategy and shareholder value. In contrast to the typical measure of shareholder value--stock price times the number of shares outstanding--this dissertation uses beta excess returns, which varies with stock price but controls for external factors. Strategy is measured using a set of strategic conduct variables from extant literature. Since strategy varies little over short periods, a particular class of strategic situations--turnarounds, in which strategic change is clearly evident--is the focus of this dissertation.