Perstorp’s Transition from Conglomerate to Focused Chemicals Firm - A Three Factor Model for Explaining Corporate Change
Abstract: Many models explain the development of firms focusing on the firms’ resources and the industry that surrounds them, and do not explicitly incorporate the role of the capital market and the owners. A need for a theoretical framework that includes all three aspects was therefore identified. The framework was constructed and tested against an empirical material comprising of the development of Perstorp during the second half of the 1990s. The analysis found that the theoretical framework had a high explanatory power concerning the events in Perstorp. The analysis also contributed to a revision of the framework increasing its explanatory power. It was also concluded that the framework might add to the understanding of other firms’ development. The value of the framework would however benefit greatly from a test on a larger population of firms. The result of the study points at the importance for the society that the capital markets are efficient.
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