Data from Compustat database was examined to detect which firms refocused and begin to understand why they did so. It was found thatduring the 1980s the largest firms diversified and smaller firms refocused. The analysis ends by noting that this may be due to the increasing domination of the economy by large firms.
1980s, competition, economic trends, diversification
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Liebeskind, Julia and Opler, Tim C., "The Causes of Corporate Refocusing" (1992). Working Papers. 155.