Financial Need vs Core Business Focus: Which is Essential in Divestiture?

摘要

The purpose of this paper is to review existing research on industrial divestment to identify the reasons for divesting. This study reports literature as well as examples of divestment cases that occurred in several developed countries. The finding in this study that divestment decisions about finance and efficiency do not always underlie their implementation, strongly imply that the divestment motivation influence of the similarity of the target asset divestment strategy tends to reflect the management of the acquirer's managerial dominance. Gaps in this research can be potential for future research. This literature review systematically analyses the findings of 15 journal articles about divestment, identifying the main thematic categories according to the main topics of this paper. This review offers a comprehensive synthesis of how the motives divestment. The factors such as environmental conditions and entry mode strategies are important in determining divestment of subsidiaries.