In many western countries, companies often spin-offdivisions that have created problems for the parent company, and consequently,the success of these spin-offs is low. Japanese companies, on the other hand,use this process to enhance the survival of the family of companies bydiversifying and...

The relationship between parent firms and their subsidiaries is a crucial aspect of corporate governance, and is increasingly complex in the global environment. We analyze an organizational arrangement quite common in Japan, the corporate spinoff, focusing on the relationship between parent...