Literature Review Women on boards and in TMTS and firm performance104 In order to seamlessly and fully integrate the new businesses start ups as well as acquisitions were carefully prepared and executed with close collaboration of the Management Board the M A department and the Group s central services such as IT finance or marketing CONERGY AG 2006 p 53 so the company claimed It was further alleged that new companies were fully integrated into CONERGY within three months due to a firmly established process and by starting the integra tion process immediately after the acquisition This claim appears ambitious in view of the high number of new businesses acquired or founded around the globe within a very short time and can thus again be taken as an indication of an optimis tic bias Weinstein 1980 It may be assumed that presumably overconfident Rueter was convinced to be better than average and that risks were manageable and controllable March Shapira 1987 The diversifying acquisitions of technolo gies in adjacent fields of the renewable energy in dustry yet posed a serious challenge to the Group Although familiar with the specific conditions of the market for solar power CONERGY was a new comer in the markets for bio energy geothermal and wind power competing with sophisticated companies with technology expertise and expe rience in the specific requirements of the market Nevertheless Rueter remained unswervingly on track for further rapid expansion It is a well es tablished phenomenon in behavioral finance that optimistic managers typically overestimate the probability of good firm performance and unde restimate the probability of bad performance Hea ton 2002 Summing up the year 2005 in his letter to shareholders he displayed an optimistic attitu de and gave reasons for continuing his strategy Market share in the market for rene wable energies will be distributed in the next five years This means that now is the time to establish a presence in promi sing regions build up strong brand names and offer cutting edge technologies Only companies that have reached a critical mass in both products and corresponding total sales will be able to remain inde pendent This means we must continue to outperform the market in future as well using an approach that broadly covers all major types of energy with a focus on re newables We are increasing invest ments in research and development and plan to make further acquisitions of com panies that offer uniquely capable system technology to ensure that we remain on this trajectory CONERGY AG 2006 pp 11 Striving to achieve his vision of becoming wor ld market leader in renewable energies Rueter pressed ahead with unrestrained expansion also in 2006 According to the annual report 2006 the number of subsidiaries rose to 77 as a result of additional 26 start ups and 13 new acquisitions of company share Furthermore five existing shareholdings were increased 2006 restated figu res 19 start ups and 12 new acquisitions Work force grew in line with the high pace of expansion staff totaled 1 480 at the end of 2006 one third of it employed at Group companies outside of Ger many In terms of the 50 50 08 strategy s object ives CONERGY moved forward faster than expect ed Foreign sales accounted for 37 percent instead of 25 percent as planned and also the percentage figure of 26 percent of non PV products exceeded projections However growing by acquisitions was CEO optimism and overconfidence

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 104
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