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The bulk of the asset reduction comes from changes in the way Shell's pension plan holdings are recorded, the company said.
Although Cusatis et al. (1993) support portfolio restructuring's positive effects by finding positive and abnormal returns, Winn (1997) states that strategic asset reduction does not turn around asset productivity, as highly distressed firms often sell off their most lucrative and often strategically important assets below value to increase cash (Andrade and Kaplan 1998; Campello et al. 2010).
Adato and Bassett [ 14] in their asset-based social protection framework reduce the role of cash transfers to protective (secure basic needs) and preventative (avert asset reduction) effects.
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Such asset reductions can damp economic growth.
Also, balancing the two strategies helps to ensure that cost and asset reductions do not compromise a company's growth opportunities with customers.
Its capital plan stated that any asset reductions that had "a direct impact on lending to the real economy would not be considered for achieving the 9 percent target".
Franca Rosa Congiu, a spokeswoman for the European Banking Authority, said the regulator took steps to avoid asset reductions that would hurt the wider economy.
For instance, while the majority of management research works refer to downsizing as a turnaround move, such as through employee layoffs (Filatotchev et al. 2000), the same term used in finance literature researches the effect of asset reductions on turnaround probability (Denis and Denis 1995a).
The ANP model is presented in Fig. 3, together with the way the experts contribute; two criteria and four subcriteria were used: exposure and sensitivity; and nonaggravation of asset exposure, reduction of the exposure, reduction of the sensitivity of assets, and nonaggravation of their sensitivity.
The proposed measures would also allow foreign investment in China's interbank market for the first time and would lower the threshold for participation in the foreign institutional investor program to at least two years of operations and $500 million in securities assets, a reduction from a requirement of five years of operation and $5 billion in assets.
For an investor in AllianceBernstein Growth and Income, the company's largest mutual fund, with $7.4 billion in assets, the reduction in fees will amount to a savings of about $9 million annually, based on data provided by Morningstar.
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