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

Dafnis N. Coudounaris*, María Orero-Blat, María Rodríguez-García

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

23 Citations (Scopus)


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.
Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Pages (from-to)408-422
Number of pages15
Publication statusPublished - 03.2020
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • subsidiary divestment
  • important relationships
  • correlations
  • moderators
  • multinomial logistic regression analysis


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