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RESEARCH PRODUCT

Three decades of subsidiary exits: Parent firm financial performance and moderators

María Rodríguez-garcíaDafnis N. CoudounarisMaria Orero-blat

subject

MarketingFinancial performanceInvestment strategy05 social sciencesDiversification (marketing strategy)ModerationMultinomial logistic regression analysisNegocis0502 economics and business050211 marketingBusiness050203 business & managementDivestmentIndustrial organization

description

Abstract This study aimed to find important constructs and relationships among models of subsidiary divestment during the period from 1989 to 2018 using correlation matrices of 80 studies, the selection of which was based on six criteria. It revealed eight important constructs, namely firm innovativeness, environmental factors in the target country, type of experience, organizational characteristics, investment strategy, parent firm financial performance, subsidiary divestment, and the moderating effects of advertising intensity and product diversification. Furthermore, it shed light on seven relationships that should be considered in future attempts to assess parent performance related to its antecedents and subsidiary divestment. Moreover, advertising intensity and product diversification were respectively weakening and strengthening moderators on firm financial performance, and advertising intensity was a weakening moderator between organizational characteristics and subsidiary divestment. The implementation of a product diversification policy did not assist in preventing subsidiary divestment. Conclusions, implications, limitations, and future research are discussed.

yearjournalcountryeditionlanguage
2020-03-01Journal of Business Research
https://doi.org/10.1016/j.jbusres.2020.01.024