A possible cause for restructuring is that investors see highly diversified companies as less attractive investments and perceive a multibusiness company as being riskier than a company that operates in one industry,

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Investors often prefer companies that focus on one industry or business, as they perceive them as having a clearer strategy and a lower level of risk compared to highly diversified companies. As a result, multibusiness companies may choose to restructure in order to simplify their operations and be seen as more attractive to investors.

A Possible Cause for Restructuring Is That Investors See Highly