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The objective of this article is to understand -outspread divestiture- and its effects on new ideas developing. From the aspects of the ideas developing, reasons, contract’s design, definition, forms and process, it is discussed based on transaction cost and corporation inertia.The study suggests that it is a theory of new organization growing, a model of corporation economic development of endogenous growth, and a strategy that can achieve the mutual benefit of both the parent corporation and the divested division, synchronously a risk arises by it.

KEYWORDS

outspread divestiture; organization growing; endogenous growth; mutual benefit strategy

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Author: Yusheng Yin, Qiang Guo

Source: http://www.scirp.org/



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