Premium Essay

Management Conflict

In:

Submitted By benjay
Words 14440
Pages 58
Journal of Banking & Finance 27 (2003) 103–131 www.elsevier.com/locate/econbase

The impact of the manager–shareholder conflict on acquiring bank returns
Marcia Millon Cornett a,*, Gayane Hovakimian b, Darius Palia c, Hassan Tehranian d,* a Department of Finance, College of Business, Southern Illinois University, Carbondale, IL 62901, USA b Graduate School of Business, Fordham University, New York, NY 10023, USA c Columbia Business School, Columbia University, New York, NY 10027, USA d Carroll School of Management, Boston College, Chestnut Hill, MA 02167, USA Received 22 May 2000; accepted 16 May 2001

Abstract This paper examines whether shareholder value-maximizing corporate governance mechanisms assist in reducing the managerial incentive to enter value-destroying bank acquisitions. We find that diversifying bank acquisitions earn significantly negative announcement period abnormal returns (AR) for bidder banks whereas focusing acquisitions earn zero AR. We then find that corporate governance variables (such as CEO share and option ownership and a smaller board size) in the bidding bank are less effective in diversifying acquisitions than in focusing acquisitions. These results are robust to the inclusion of the usual control variables. Ó 2002 Elsevier Science B.V. All rights reserved.
JEL classification: G21; G34 Keywords: Banks; Bank acquisitions; Corporate governance

1. Introduction Several empirical studies have documented a negative relation between firm performance and the level of diversification in a firm’s lines of business in the 1980s (see

Corresponding authors. Address: Carroll School of Management, Boston College, Chestnut Hill, MA 02167, USA. Tel.: +1-618-453-2459; fax: +1-618-453-7961. Tel.: +1-617-552-3944 (H. Tehranian). E-mail address: mcornett@cba.siu.edu (M.M. Cornett). 0378-4266/02/$ - see front matter Ó 2002 Elsevier Science B.V. All

Similar Documents

Free Essay

Conflict Management

...Effective Methods of Resolving Conflict in a Diverse Workplace Running head: RESOLVING CONFLICT IN DIVERSE WORKPLACE Your name here Your University name here Table of Contents Abstract 3 Problem Statement 4 Literature Review 10 Draft Research Design 22 References 29 Abstract Workplace conflict must be analyzed as a social phenomenon and this social context means that conflicts are caused by a wide variety of factors, including an increasingly diverse workplace. The focus of this study is on how these forms of social conflict are managed and resolved in the workplace – which has become increasingly more diverse in recent years – with particular attention to innovative perspectives that facilitate better understanding of conflict resolution and improve approaches to conflict management. Managing conflict is undoubtedly one of the most critically important dimensions of the management of the employer-employee relationship. While conflicts or disputes are a natural result of the structure and operations of the workplace, employers need efficient ways to resolve such conflict quickly and fairly to avoid the many negative costs generated by unresolved problems. As the generally weaker party in the relationship, employees need the protection provided by both formal and informal dispute management systems aimed at achieving organizational justice. This issue, as well as many others, is addressed through...

Words: 3368 - Pages: 14

Premium Essay

Conflict Management

...#489 CONFLICT-MANAGEMENT STYLE SURVEY Marc Robert Because people’s rational responses are usually short-circuited by the stress of the moment, behavior in complex interpersonal and intergroup confrontations is difficult—if not impossible—to predict. Self-help formulas that promise to make people more assertive or effective in dealing with conflict in their lives will not work if they do not fit the “style” of the person using them. Accepting suggestions for handling conflict before increasing personal awareness and self-knowledge is like buying mail-order clothes. The more one learns about how he or she might react, the greater chance of selecting an appropriate course of action. Each person must know his or her own strengths, weaknesses, natural inclinations, and preferences, because in conflict these positions tend to become even more rigid and fixed and to inhibit a satisfactory resolution. Unfortunately, such self-knowledge does not come easily. True self-knowledge can only be gained by actively seeking out information about oneself and then acting on it in the next situation, asking for feedback, and then trying again. Self-awareness can be achieved through one or more of the following methods: Intrapersonal Awareness. Listening to our internal dialogue, being aware of our true feelings, and checking out our physical reactions at the time of conflict can be eye opening. Observation of Others’ Reactions. Being aware of subtle verbal and physical cues that...

Words: 1628 - Pages: 7

Premium Essay

Conflict Management

...CONFLICT MANAGEMENT INTRODUCTION Conflict refers to all kinds of opposition or antagonistic interaction. It is based on scarcity of power, resources or social positions, and differing value structures. Conflict has two faces, functional (or constructive) and the other dysfunctional (or destructive). Dysfunctional conflict is crucial for organizations and without an effective means of handling it, conflict can tear relationship apart and interferes with the exchange of ideas, information and resources in groups and between departments. Well manage conflict on the other hand helps workers anticipate and solve problems and makes them feel confident. This also strengthens their relationships and makes them become more committed to the organization THE FACES OF CONFLICT The organizational benefits of functional conflict are increased effort and improved performance, enhanced creativity, and personal development. The symptoms of dysfunctional conflict include indecision, resistance to change, emotional outbursts, and stress. By monitoring these various signs and symptoms, management may decide when to encourage conflict and when it is time to step in and attempt to resolve or neutralize it. The first is called conflict triggers, when stimulate conflict, and the second involves conflict resolution techniques, which are used when functional conflict deteriorates into dysfunctional conflict. Types of conflict situation Since conflict has both positive as well as negative...

Words: 2265 - Pages: 10

Premium Essay

Conflict Management

...Jessica Devaney Word Count: 498 Conflict Management Reflective Essay Arise of conflicts tend to be unavoidable in most all aspects of one’s life due to different ideas, personalities, morals, work ethic and everything else that make us an individual. It is state that conflicts occur when ‘incompatible goals, attitudes, emotions, or behaviors lead to disagreement or opposition between two or more parties.’ However, just because conflicts are bound to arise in both personal relationships and in the workforce, does not mean there are not multitudes of resolution and avoidance techniques. There is not one right way to resolve a specific conflict because each case is unique in its own ways, just as the reasoning behind the conflict arising. Assertiveness is one of my strongest personality traits; I don’t back away from or easily give up something I want to fight for and that I want or work for. However, sometimes my assertiveness will clash with my urge of wanting to help someone and see the best in them. Although helpful, in some situations that emotion unwillingly takes control and I become over-cooperative. In my personal experience, it is much harder to come to a win-win resolution when it includes relationship conflicts, when comparing the task and process conflict. Relationship conflict includes emotion, and uncertainty about the other individual or group’s intentions. Even with trust and your own instincts, either party in the conflict can end up being steered because of...

Words: 507 - Pages: 3

Premium Essay

Conflict Management

...Conflict Management Plan 1. Identify the available conflict management strategies and their strengths and weaknesses. |Strategy |Strengths |Weaknesses | |Competing Strategy |When up against a deadline a person may |Team member on the losing need of a decision| |Long-termaction plan that is devised to |give up power to gain a win. Where this |may become less willing to assist in other | |help a company gain a competitive |works is when you know you have the right |projects. | |advantage over its rival. |solution, because a fast decision is | | | |required | | |Collaborating Strategy |Team member try to understand other team |May take a long time to complete goals | |When in conflict, people try to work |members views in order to find solutions to| | |together to achieve a mutually outcome |the problem. A winning solution is when all| | | |are in agreement, thus a group | | | ...

Words: 821 - Pages: 4

Premium Essay

Conflict Management

...Proposal for an Integrated Conflict Management System MBA 561: Conflict Management Jones International University September 2012 In Mark 10: 9 (King James Bible Version), Jesus tells us “What therefore God hath joined together, let no man put asunder”. Clearly, the Son of God and beloved Savior informs his chosen believers that God, the Almighty Father, operates through solidity. It is therefore a concern of Gods as to why his house, the church, has become a home divided and confrontational. The writer of this paper intends to explore all possible explanations for such chaos, while offering strategic and accurate concepts for resolution. Proposal for an Integrated Conflict Management System Many names can be used to describe a church; the official house of God, the sanctuary, the place of peace, and my personal favorite, “The spiritual grocery store for the souls needs.” On surface, one would assume that such a place would the grounds for constant peace and unity amongst its administrative staff as well as its members. Oddly enough, despite the communicated perfection of God himself, the church too suffers from many areas of conflict based on the imperfections of those who are involved. With the help of Herman Blanding, head pastor for the Faith with Works ministry, my goal is to passionately explore and accurately assess conflict management within the church, and present the absolute best conclusions to help bring the church to its desired state of unity, obedience...

Words: 5290 - Pages: 22

Premium Essay

Conflict Management

...Conflict is a fact of life - for individuals, organizations, and societies. The costs of conflict are well-documented - high turnover, grievances and lawsuits, absenteeism, divorce, dysfunctional families, prejudice, fear. What many people don't realize is that well-managed conflict can actually be a force for positive change. Conflict is “an expressed struggle between at least two interdependent parties who perceive incompatible goals, scarce resources, and interference from others in achieving their goals” (Hocker, 1991). There are two basic types of conflicts: substantive and emotional. According to Schermerhorn et.al., substantive conflict is a fundamental disagreement over ends or goals to be pursued and the means for their accomplishment. This type of conflict arises when people disagree over such things as group and organizational goals, policies and procedures, task assignments, or the distribution of rewards. In contrast, emotional conflict “involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like” (Schermerhorn et al). This type of conflict is the most common and can emerge from a variety of settings. Both types of conflict can be broken down into four basic levels of conflict within an organization. These four levels of conflict are: intrapersonal, interpersonal, intragroup, and intergroup. An intrapersonal conflict is one that goes on within one’s self. This level of conflict can happen when...

Words: 1192 - Pages: 5

Premium Essay

Conflict Management

...Conflict in the workplace is inevitable. This is because individuals arrive at the office with differing goals and needs. However, conflict in the workplace does not have to be negative. If it can be resolved effectively, conflict can be productive in the workplace and can lead to personal and professional growth, which benefits the organization by increasing understanding, self-knowledge, and group cohesion. On the other hand, as many of you have probably witnessed, conflict that is not addressed effectively can turn into personal animosities, breakdowns in team efforts, and wasted talent (MindTools, n.d.).  Thus, it is important for leaders and managers to know how to address workplace conflict. Managed and Out of Control Conflict Managed Conflict | Out of Control Conflict | Strengthens relationships and facilitates team building | Damages relationships and discourages cooperation | Encourages open communication and cooperative problem solving | Results in defensiveness and hidden agendas | Increases productivity | Wastes time, money, and resources | Deals with real issues and concentrates on win–win resolutions | Focuses on fault–finding and blaming | Calms and focuses towards results | Is often loud, hostile and chaotic | Supports respectful workplace and client relationships and a client satisfaction/service orientation | Results in considerable workplace/client dissatisfaction and missed opportunities for service recovery | Facilitates an environment...

Words: 1063 - Pages: 5

Premium Essay

Conflict Management Plan

...of Phoenix Material Conflict Management Plan 1. Identify the available conflict management strategies and their strengths and weaknesses. |Strategy |Strengths |Weaknesses | |Competitive strategy |▪Short term outcome. Rise in output/result |▪Fails in the long- run. It reduces the | | |▪ Provides a quick resolution. |inter-personal connections. | | | |▪ Could potentially cause poor relationship | | | |between competing parties | | | |▪ Reach solution at the expense of others. | |Avoidance strategy |▪ Avoids disruption |▪It doesn't provide any solution by | | |▪Leads into instant optimistic outcome. |itself. | | |▪Cools down the sentiments as well as |▪ Failure to reconcile differences of | | |temperament and therefore let folks to look|original conflict. ...

Words: 665 - Pages: 3

Premium Essay

Conflict Management

...Conflict Management Plan 1. Identify the available conflict management strategies and their strengths and weaknesses. Strategy Strengths Weaknesses Accommodation Emphasis on cooperation is high Emphasis on Assertiveness is low Collaboration High on cooperation, Emphasis on assertiveness is high, An emphasis on a mutual positive outcome is high Very rarely comes around to this situation, because these perfect conditions are not very common Competition Emphasis on assertiveness is high; short term outcome Emphasis on cooperation is low; not sustainable in the long run Compromise Used as a last resort; intended to allow others to consider other views and opinions Everyone involved gives up something, so the intentions are not always that great Avoidance Allows for parties to not be involved with each other in the event of flared tempers No cooperation No assertiveness 2. Which of the available conflict management strategies is most appropriate for the current situation with David and James? Provide your rationale, including what factors you considered in making your selection. Your response should be at least 100 words. The most obvious choice to me would be the collaboration conflict management plan. However, this situation is highly unlikely because it involves full cooperation for all parties involved. Therefore, I would have to fall back the accommodation conflict management plan. The problem with David and James is that...

Words: 510 - Pages: 3

Premium Essay

Conflict Management

...Conflict Management Plan Doug Rose MGT311 Organization Development 3 July 2012 Eve Barnett University of Phoenix Material Conflict Management Plan 1. Identify the available conflict management strategies and their strengths and weaknesses. |Strategy |Strengths |Weaknesses | |Competing |High degree of assertiveness |Win at all costs | | |Used in emergency situations |Hurts others feelings | | |Good for unpopular decisions |Viewed as abusive | | | |If used in less than urgent situations could| | | |cause resentment | | |Parties show respect to each other |Takes longer to resolve | |Collaborating |Works well in team setting |Both parties may not be open to | | |Resolving previously unresolved conflicts |collaboration | | ...

Words: 637 - Pages: 3

Premium Essay

Conflict Management

...University of Phoenix Material Conflict Management Plan 1. Identify the available conflict management strategies and their strengths and weaknesses. Strategy | Strengths | Weaknesses | Accommodating strategy | Is low in assertiveness and high in cooperation. | The outcome is of low importance. | Compromising strategy | Moderate assertiveness and moderate cooperation. | There is no clear winner or loser. Basically you give up more than you would want. | Collaboration strategy | Is high on assertiveness and high on cooperation. Finds an integrative solution to ideas presented. | Calls for a significant time commitment and is not appropriate for all conflicts. | Avoiding strategy | Primarily use for trivial issues and allows for parties involved to cool down. | Seeks to put off conflicts indefinitely. Not ideal for a person with high power in an organization. | Competing strategy | Works best in a limited number of conflicts, such as emergency situations. | Low on cooperation and usually will fail in the long run | 2. Which of the available conflict management strategies is most appropriate for the current situation with David and James? Provide your rationale, including what factors you considered in making your selection. Your response should be at least 100 words. In dealing with the situation between David and James the strategy that would be appropriate would be the collaboration strategy. Both employees have a good reputation within the...

Words: 577 - Pages: 3

Premium Essay

Conflict Management

...Conflicts can be resolved through actively careful planning. Conflict management is normally done in the following areas: monitoring the environment, positive outlook, assessment of favorable and adverse factors, and the reassessment of them. In theory and practice solving methods and conflict management there are various ways: the withdrawal from the conflict, strong-arm methods, the style of cooperation, the desire to enter into the situation on the other hand, the desire to compromise, and others. To resolve organizational conflicts in the company often uses the following methods: - Manager use his position in the organization (orders, memoranda, etc.); - Detailed explanation of requirements to work; - Separation of the parties in conflict or reduction of interdependence; - Merger of units to address common challenges; - System of encouragements, rewards. The use of such methods of conflict management helps achieve common goals, and motivates employees, unites them into a single team. As in the real life is not so easy to find out the true cause of the conflict and to find an adequate way to resolve, it is advisable to choose a strategy of behavior depending on the circumstances. There are five basic styles of behavior in the conflict: - Competition or rivalry; - Cooperation; - Compromise; - Adaptation; - Neglect or evasion. When persuing conflict resolution in the workplace there are several strategies that you should try to keep in mind. By having successful...

Words: 339 - Pages: 2

Premium Essay

Conflict Management

... Professor Management Studies Department Chittagong University, Chittagong. Submitted By: NUR-E-SHAFA Exam Roll: 2006/93 Class Roll: 4951 Management Studies Department Chittagong University, Chittagong. Conflict management- its nature, significance and impacts in BD firms Executive summary Whenever people talk of conflict or say that a conflict has developed, the usual impression is that there is something frightening. This notion prevails despite the fact that people know there is no organization which is altogether free from conflicts. Even non-profit and service organizations such as educational institutions and hospitals are not devoid of conflicts. Which is inevitably is recognized by an individual only when individual is faced with a conflict situation. In all other cases, one refers to it as bad and avoidable and regards it as a failure of parties in conflict. But productively engaging in conflict is always valuable. Most people are willing and interested in resolving their conflicts; they just need the appropriate skill set and opportunities in which to practice this skill set. Without a conflict skill set, people want to avoid conflict, hoping it will go away or not wanting to make a “big deal...

Words: 10178 - Pages: 41

Free Essay

Conflict Management

...Conflict Management Paper Conflict Management What is conflict? Free Management Library (1997-2008) states, “conflict is when two or more values, perspectives and opinions are contradictory in nature and haven't been aligned or agreed about yet” (para. 1). Conflicts are inevitable because of one’s individual distinctions; such as religion, political views or even ethics. (Free Management Library, 1997-2008) also proclaims conflict to be needed because it helps to raise and address problems as well as helps people learn how to recognize and benefit from their differences” (para. 1). Consequently, conflict management techniques are needed in the workplace to combat conflicts within organizations. Conflict management in the workplace is a very common issue. Every manager, supervisor, team lead or employee has dealt with conflict at some point or another. The fundamentals for conflict management are comprised of a systematic approach to solving the disagreement, improving communication and effective teamwork. This paper will describe methods for developing teams that are creative and innovative. As well as, describe how to develop skills for both team members and leaders that will allow them to assimilate into newly formed teams and become effective members quickly and efficiently. Effectively resolving conflicts is executed through conflict management. Learning how to manage conflicts to produce a safe and productive work environment is a very important...

Words: 897 - Pages: 4