For example, pressures from non-profit-oriented stakeholders may generate reputation costs to the top managers, relating to the negative public opinion on asset divesture attempts.
After eliminating repeated articles, we found 130 unique reports related to asset divesture, 56 reports on downsizing and 577 unique reports related to asset expansion activities.
The first category is asset divesture, which is the count of sell-off, spin-off, plant closure (liquidation) and business withdrawal activities.
Using Toshiba Machine Co as an example, we identified reports that relate respectively to asset divesture, asset expansion and downsizing.
Our dependent variables have certain important characteristics: (1) they are non-negative; (2) they are integer-valued, denoting counts of asset divesture and asset expansion activities; (3) they exhibit overdispersion, with 93 percent of the values on asset divesture and 68 percent of the values on asset expansion equaling zero; and (4) they are longitudinal.
The results show that Japanese firms engaged in significantly fewer asset divesture restructuring and more asset expansion restructuring only after the implementation of the Corporate Restructuring Law.
Downsizing is a response to diseconomies of scale resulting from excessive growth while asset divesture or downscoping is a response to diseconomies of scope brought about by over-diversification (Markides 1992).
The U-shaped relationship between the level of managerial ownership and the frequency of asset divesture activities was not supported by the results shown in Model 4.
15 times more asset divesture activities, while a firm with one additional point on the bank influence scale has on average 20 percent fewer asset divesture activities.