The Corporate Sell-Off

10 Pages Posted: 19 May 2006

See all articles by Scott C. Linn

Scott C. Linn

University of Oklahoma - Michael F. Price College of Business

Michael S. Rozeff

SUNY at Buffalo - Department of Financial & Managerial Economics

Abstract

This article reviews a variety of financial economic hypotheses that may explain the sale of corporate assets and discusses the relevant empirical evidence regarding corporate divestitures. Two explanations are stressed: diseconomies to the seller and economies to the buyer. The article also examines several phenomena related to sell-offs, such as their relation to prior mergers, the presence or absence of reported sales prices, differences between voluntary and involuntary sell-offs, and the announcement effects.

Keywords: sell-offs, divestitures, synergy, mergers

JEL Classification: G30, G34

Suggested Citation

Linn, Scott C. and Rozeff, Michael S., The Corporate Sell-Off. Available at SSRN: https://ssrn.com/abstract=903403

Scott C. Linn (Contact Author)

University of Oklahoma - Michael F. Price College of Business ( email )

307 West Brooks
Norman, OK 73019-4004
United States
405-325-3444 (Phone)
405-325-1957 (Fax)

Michael S. Rozeff

SUNY at Buffalo - Department of Financial & Managerial Economics ( email )

Buffalo, NY 14260
United States

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