We examine the influence of interdependencies on parent companies’ cash flow rights in their subsidiaries, focusing on two forms of interdependency that characterize multiunit firms: relatedness and multimarket contact. Specifically, we argue that interdependencies affect the extent of a...

In this paper, we investigate the antecedents of inertia in capital allocation decisions in organizations. Despite the importance of flexible capital reallocation, empirical evidence points to remarkably high levels of stability in these decisions. Adopting a behavioral perspective, we focus on...