The Institutionalization of Divestitures

A Meta-Analysis of Stock Market Performance

  • Authors
  • Miriam Flickinger

Table of contents

  1. Front Matter
    Pages I-XVI
  2. Miriam Flickinger
    Pages 1-4
  3. Miriam Flickinger
    Pages 5-11
  4. Miriam Flickinger
    Pages 13-22
  5. Miriam Flickinger
    Pages 23-41
  6. Miriam Flickinger
    Pages 43-60
  7. Miriam Flickinger
    Pages 61-72
  8. Miriam Flickinger
    Pages 73-79
  9. Back Matter
    Pages 81-110

About this book

Introduction

Restructuring and, therein, divestitures have become an indispensable element of corporate strategy for many firms. Divestitures, defined as a firm’s decision to dispose of a significant portion of its assets, can increase a firm’s strength by changing its asset structure and its resource allocation patterns.

Miriam Flickinger investigates the stock market reaction to divestiture announcements from an institutionally-based perspective. In the spirit of organizational theory, this perspective applies the processes of institutionalization to capital markets. It analyzes how organizational practices and policies are perceived by a capital market in which socio-organizational factors play an influential role. Using meta-analytic procedures, the author extends the present financially dominated understanding of divestiture performance implications and offers a new rationale to why shareholders consider divestitures positively. Results show that divestitures are socially embedded when the value of a firm’s divestiture depends on the prevailing institutional logics within the business society.

Keywords

Business Change Divestitures Finanzierung Institutionalisierung M&A-Forschung Performance Strategisches Management

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-8349-9467-7
  • Copyright Information Gabler Verlag | GWV Fachverlage GmbH, Wiesbaden 2009
  • Publisher Name Gabler
  • eBook Packages Business and Economics (German Language)
  • Print ISBN 978-3-8349-1670-9
  • Online ISBN 978-3-8349-9467-7
  • About this book
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