Holding Companies: A Structure for Managing Diversification

  • Erlinda S. Echanis UP College of Business Administration
Keywords: Holding companies, diversification, M-form


The holding company as an organization structure for managing diversification and growth of business operations in the Philippines and in other countries is discussed in this paper. It includes a discussion of: 1) the evolution of holding companies in the United States, South Korea, China and in the Philippines; 2) some advantages of forming holding companies in the Philippines and in other countries; 3) some disadvantages of forming holding companies; and 4) control issues arising from holding company-subsidiary relationships.

Author Biography

Erlinda S. Echanis, UP College of Business Administration

Professor of Finance