Firms that sold off related units in which resource sharing was a possible source of economies of scope have been found to produce lower returns than those that sold off businesses unrelated to the firm's core business.

Question

Quizplus · Accepted Answer

Research suggests that divesting related units can lead to lower returns due to the loss of potential synergies and economies of scope, whereas selling unrelated businesses may not impact core operations as significantly.

Firms That Sold Off Related Units in Which Resource Sharing