Topic
Divestment
About: Divestment is a research topic. Over the lifetime, 1518 publications have been published within this topic receiving 32812 citations. The topic is also known as: disinvestment & divestiture.
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Book•
01 Jan 1987
TL;DR: In this article, the authors cover the consolidation and merger of corporations and corporate divestiture in the United States, and present a taxonomy of the companies involved in the mergers and mergers.
Abstract: This book covers the consolidation and merger of corporations and corporate divestiture in the United States.
840 citations
TL;DR: In this paper, the authors find that asset sales lead to an improvement in the operating performance of the seller's remaining assets in each of the three years following the asset sale, and that the improvement in performance occurs primarily in firms that increase their focus.
778 citations
TL;DR: In this paper, the authors examined the impact of post-acquisition asset divestiture and resource redeployment on the long-term performance of horizontal acquisitions and found that both asset divestitures and resource re-ployment can contribute to acquisition performance, with a significant risk of damaging acquisition performance when the divested assets and redeployed resources are the target.
Abstract: This paper examines how value is created in horizontal mergers and acquisitions. More specifically, it examines the impact of post-acquisition asset divestiture and resource redeployment on the long-term performance of horizontal acquisitions. The data come from a detailed survey of acquiring firm managers and cover 253 horizontal mergers and acquisitions that were initiated by European and U.S. firms in manufacturing industries for the period 1988–1992. This study incorporates insights from the cost efficiency and resource-based theories to propose a model of the effects of asset divestiture and resource redeployment on long-term acquisition performance. Overall, our results show that both asset divestiture and resource redeployment can contribute to acquisition performance, with, however, a significant risk of damaging acquisition performance when the divested assets and redeployed resources are those of the target. Copyright © 1999 John Wiley & Sons, Ltd.
777 citations
TL;DR: The authors examined the effect of divestment of South African business units on the stock return behavior of publicly traded firms and found that significant and negative excess returns accrue to shares of companies announcing divestments of operations.
Abstract: Among the various stakeholders of a firm, senior managers are the most likely targets for private and public political pressures. Other stakeholder groups are less visible and may be perceived as less influential in corporate strategy formulation and implementation. In some situations, consequently, senior executives may adopt corporate strategies in response to political pressures even if these strategies may be costly to shareholders. In this study, a special case is examined: the effect of divestment of South African business units on firm value. Using data from 1984 through 1990, we examine the impact that announcements of divestments have upon the stock return behavior of publicly traded firms. Our results indicate that significant and negative excess returns accrue to shares of companies announcing divestments of South African operations. These results are supportive of the premise that noneconomic pressures may influence managerial strategies rather than value-enhancement goals. © 1997 by John Wiley & Sons, Ltd.
715 citations
TL;DR: In this article, inadequate governance and inappropriate strategy have been proposed as antecedents of the divestment activity of restructuring firms in the 1980s, and combined both views in a structural equati...
Abstract: Both inadequate governance and inappropriate strategy have been proposed as antecedents of the divestment activity of restructuring firms in the 1980s. We combined both views in a structural equati...
636 citations