Alexander Himme Nominated for Best Paper Award

The Strategic Management Society has nominated KLU professor Alexander Himme’s contribution for the Best Conference Paper Award. From almost 1,500 submissions, the SMS selection committee chose 10 finalists for the award.

Professor Alexander Himme (KLU) and Ann-Christine Schulz (Freie Universität Berlin) co-authored the nominated paper entitled How Wall Street Legitimized Corporate Downsizing. Himme and Schulz take a close look at the effects of corporate downsizing announcements on the stock market. Drawing on neo-institutional theory, the paper shows that throughout the 1990s investors increasingly interpreted downsizing announcements as evidence that firms were following the path of shareholder value maximization. The paper shows that indeed, stock market reactions to downsizing announcements are not uniform over time but followed a positive linear trend. “With this paper, we are contributing to the research on the downsizing-performance relationship,” Himme explained. “We’d like to help solve the puzzle of why managers widely adopted ‘corporate diets’ despite their ambiguous long-term performance effects.”

The SMS annual conference will take place in Berlin from September 17 - 20. The winner of the Best Conference Paper Award will be announced during the conference.