Abstract

http://ssrn.com/abstract=1615756
 
 

References (42)



 
 

Citations (3)



 


 



Divestitures, Wealth Effects and Corporate Governance


Sian A. Owen


University of New South Wales (UNSW) - School of Banking and Finance; Financial Research Network (FIRN)

Liting Shi


University of New South Wales (UNSW) - School of Banking and Finance

Alfred Yawson


City University London - Sir John Cass Business School; University of Adelaide Business School


Accounting & Finance, Vol. 50, No. 2, pp. 389-415, June 2010

Abstract:     
We analyse the market reaction to divestiture decisions and determine the impact of corporate governance practices. We find the market reaction is significant and can be determined using internal governance mechanisms. We evaluate the determinants of the decision to sell using a control sample of firms displaying characteristics often associated with divestitures indicating that these firms may face the same incentives to divest but elect not to restructure in this manner. Our results suggest that a combination of strong internal and external governance may force managers to act in a manner that is incompatible with their personal desires.

Number of Pages in PDF File: 27

Accepted Paper Series


Date posted: June 4, 2010  

Suggested Citation

Owen, Sian A. and Shi, Liting and Yawson, Alfred, Divestitures, Wealth Effects and Corporate Governance. Accounting & Finance, Vol. 50, No. 2, pp. 389-415, June 2010. Available at SSRN: http://ssrn.com/abstract=1615756 or http://dx.doi.org/10.1111/j.1467-629X.2009.00332.x

Contact Information

Sian A. Owen
University of New South Wales (UNSW) - School of Banking and Finance ( email )
Sydney, NSW 2052
Australia
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

Liting Shi
University of New South Wales (UNSW) - School of Banking and Finance ( email )
Sydney, NSW 2052
Australia
Alfred Yawson
City University London - Sir John Cass Business School ( email )
106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
University of Adelaide Business School ( email )
No 233 North Terrace
Adelaide, South Australia 5005
Australia
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