Theoretical Background of the Study

This study aims to extend the present financially-dominated understanding of divestiture performance implications by highlighting them from an institutionally- based organizational perspective. Therefore, this section will give an overview of relevant aspects of institutional theory. After a short introduction to the institutionalization of corporate events, the section is concerned first with the sources of legitimacy (Section 3.1) and second, will focus on the process of institutionalization (Section 3.2).