Conference Proceedings
Bhatia, S. K., Giarratana, M. S., & Santalo, J. (2024). Examining the Impact of Capital Redeployment on Strategic Business Segment Disclosures. In Academy of Management Proceedings (Vol. 2024, No. 1, p. 14928). Valhalla, NY 10595: Academy of Management
This study explores the impact of capital redeployment within internal capital market on a firm’s decision to disclose or withhold business segment information. It also investigates whether the relationship between capital redeployment and segment disclosure is moderated by the level of firm’s unabsorbed slack. Furthermore, the study examines the impact of diversification in related product markets on the likelihood of disclosing business segment information. This study illustrates that diversified firms, when reallocating capital across product markets, tend to disclose a greater number of segments. This strategic approach to disclosure is in line with the overarching objectives of diversified firms equipped with capital redeployment capabilities. It aims to bolster their competitive stance by showcasing their adeptness at reallocating capital effectively, thereby dissuading potential competitors from entering these markets. It further shows that the positive relationship between capital redeployment and segment disclosure is weakened as the firm’s level of unabsorbed slack increases. Firms that have considerable unabsorbed slack often engage in more capital redeployment. However, they may not increase disclosure because of inefficiencies associated with factors such as excessive diversification. Furthermore, firms diversifying into related product markets often disclose fewer segments, prioritizing the protection of synergistic sources. These findings align with a unique dataset on the U.S. pharmaceutical industry spanning from 1983 to 1992. The dataset encompasses diversification across three distinct industries within the U.S. medical sector, spanning a total of 85 product categories.
Nominated for Strategic Management Society Annual Conference Paper Prize, 2023.
Bhatia, S. K. (2024). Unpacking the Organizational Factors Shaping Firm Value in Multi-Business Firms. In Academy of Management Proceedings (Vol. 2024, No. 1, p. 17203). Valhalla, NY 10595: Academy of Management
This study presents initial empirical findings that highlight how corporate advantages from resource redeployment depend on specific organizational factors. By examining vertical and horizontal organizational configurations—such as the number of organizational layers and the concentration of functional activities—I analyze their impact on the relationship between inducements and corporate value. Utilizing a unique dataset from the U.S. Medical and Healthcare Marketplace Guide, this research provides detailed insights into the U.S. pharmaceutical industry from 1983 to 1992. My findings corroborate existing literature, showing that increased industry-level volatility enhances firm value by boosting the option value associated with resource redeployment. Theoretically, I contribute by identifying two novel boundary conditions. First, I demonstrate that as the number of organizational layers increases, the positive effect of industry volatility on firm value diminishes. More layers can reduce top-level oversight, leading to greater resource misallocation and delays in exiting underperforming businesses. Second, while it is generally believed that concentrating functional activities (like R&D, manufacturing, and marketing) at the headquarters improves integration and decision-making, my results suggest an opposite, though statistically insignificant, effect.
Nominated for Strategic Management Society Annual Conference Ph.D. Paper Prize, 2024
Working Papers
Ad-hoc Reviewing and Other Services
Reviewed for Strategic Management Society Annual Conference, Istanbul, Turkey, for “Knowledge and Innovation” interest group. October 2024
Volunteer for Strategic Management Society Annual Conference, Toronto. October 2023
Volunteer for Strategic Management Society, Annual Virtual Conference. October 2020
Panellist for the “Foundational Scholar Interview”, Knowledge and Innovation IG Session at the Strategic Management Society Annual Conference, Toronto (Invited Scholar: Professor Rajshree Agarwal, Rudolph Lamone Chair and Professor in Strategy & Entrepreneurship, Director, The Ed Snider Centre for Enterprise & Markets, Robert H. Smith School of Business, University of Maryland). October 2023