Performance Effects of Corporate Divestiture Programs
Even though acquisitions have generally taken a much more prominent place in strategic management research, divestitures have attracted more and more research attention recently (Brauer, 2006; Johnson, 1996). The term divestiture stands for a group of vehicles through which a firm adjusts its ownership structure and reduces its business portfolio scope. The most prominent vehicles which are commonly captured under the umbrella term divestiture are sell-offs, spin-offs or equity carveouts. Over the past few decades, scholars have contributed considerably to our knowledge of the antecedents of divestitures and offered further insights into divestiture performance (Berger & Ofek, 1999; Bergh & Lim, 2008; Haynes, Thompson, & Wright, 2002, 2003; Hite, Owers, & Rogers, 1987; John & Ofek, 1995; Lang, Poulsen, & Stulz, 1995; Montgomery, Thomas, & Kamath, 1984). But still, many ambiguities and gaps remain in our understanding of divestitures.
KeywordsStock Market Capital Market Abnormal Return Market Return Event Window
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