Diversified company industry

Financial management of conglomerate companies has changed drastically from the 1980s to the 1990s. In the 1980s, shareholder wealth seemed to be generated by the chief financial officer in spinoffs, share buybacks and recapitalizations. However, in the 1990s, companies that restructure are usually finding ways to enhance their operations. Companies are divesting subsidiaries that are not in their main line of business. The diversified companies that are more focused on earnings growth are a better investment than those that retain the financial management strategies of the 1980s.