By a News Reporter-Staff News Editor at Real Estate & Investment Week -- Investigators publish new report on Property Management. According to news reporting originating from Kuala Lumpur, Malaysia , by VerticalNews correspondents, research stated, "Divestitures of property, plant and equipment (PPE) assets are a common form of corporate restructuring. However, divesting companies do not necessarily attain improved post-divestiture shareholder wealth." Our news editors obtained a quote from the research from National University , "Studies show company characteristics and use of divestiture proceeds may influence divestiture outcomes. This paper attempts to determine these divesting company characteristics and use of proceeds associated with improved shareholder wealth based on the Agency Theory. A sample of Malaysian public-listed companies that divested assets within 2002-2005 is used. Logistic regression segregates these companies based on their industry-adjusted operational returns. Companies that improve post-divestiture operational performance require urgent pay out motives to divest. Companies with deteriorated post-divestiture performance divest without urgent pay out motive and tend to retain proceeds. This suggests agency problem of managerial discretion in asset divestitures. In asset selection, divestitures of larger and more inefficient assets were found associated with improved company performance." According to the news editors, the research concluded: "Malaysian companies prefer divesting assets related to their core businesses indicating a diversified company structure is more beneficial than a focused structure in developing countries." For more information on this research see: Asset Divestitures And Corporate Operational Returns: An Agency Theory Perspective On Malaysian Public-listed Companies. International Journal of Strategic Property Management , 2013;17(4):347-360. International Journal of Strategic Property Management can be contacted at: Vilnius Gediminas Tech Univ, Sauletekio Al 11, Vilnius , Lt-10223, Lithuania . The news editors report that additional information may be obtained by contacting J.L. Ym , Natl Univ Malaysia UKM, Sch Management, Kuala Lumpur, Malaysia . Additional authors for this research include F.M. Nor and N. Alias . Keywords for this news article include: Asia , Malaysia , Kuala Lumpur , Property Management Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
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