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A Qualitative Assessment of GE's Performance Prospects
Author(s) -
Le Guyader Louis P.
Publication year - 2016
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22140
Subject(s) - divestment , earnings , plan (archaeology) , bolster , business , industrial organization , signal (programming language) , computer science , operations management , operations research , finance , economics , engineering , mechanical engineering , geology , paleontology , programming language
In this article the author discusses the final elements of GE's reorganization plan to produce a stronger, streamlined industrial giant that has shed an increasingly burdensome finance arm. The simplest assessment is that the full benefits of the reorganization may take time to emerge as the after‐effects of divestitures linger and acquisitions take time to close and digest. New risks come with the reorganization; and the reorganization and the new business model is exposed to several layers of new regulations. The final result may not deliver as clear an industrial earnings signal as first expected. The plan may not be executed as cleanly as expected, making that signal noisy. © 2016 Wiley Periodicals, Inc.