Capital Discipline and Financial Market Relations in Retail Globalization: Insights from the Case of Tesco plc

Wood, Steven, Wrigley, N and Coe, NM (2016) Capital Discipline and Financial Market Relations in Retail Globalization: Insights from the Case of Tesco plc Journal of Economic Geography, 17 (1). pp. 31-57.

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Abstract

This paper provides an in-depth study of leading transnational food retailer Tesco plc to explore how its financial management and relations with the investment community – notably its reputation for capital discipline – underpinned successful expansion. Informed by close dialogue with equity analysts, we investigate how this model deteriorated since the late 2000s with declining returns, leading to high-profile international divestitures. The analysis assesses the drivers of these difficulties, and conceptualises them. It examines how the retailer, pressured by the investment community, reviewed its international strategy and attempted to ‘reset’ its relations with capital markets to re-emphasise shareholder value and returns. The research teases out the manner in which legitimacy with capital markets underpins the extent, pace and form of global retail expansion, leading to significant implications for workers, consumers and wider stakeholders across spatially dispersed host markets.

Item Type:	Article
Subjects :	Surrey Business School
Divisions :	Faculty of Arts and Social Sciences > Surrey Business School
Authors :	Name Email ORCID Wood, Steven Sm.Wood@surrey.ac.uk Wrigley, N Coe, NM
Date :	20 January 2016
DOI :	10.1093/jeg/lbv045
Copyright Disclaimer :	This is a pre-copyedited, author-produced version of an article accepted for publication in Journal of Economic Geography, following peer review. The version of record J Econ Geogr (2016) 17 (1): 31-57 is available online at: https://academic.oup.com/joeg/article/17/1/31/2930539/Capital-discipline-and-financial-market-relations
Depositing User :	Symplectic Elements
Date Deposited :	15 Dec 2015 15:41
Last Modified :	16 Jan 2019 17:01
URI:	http://epubs.surrey.ac.uk/id/eprint/809516

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