Skip to main content

Divestitures, wealth effects and corporate governance

Buy Article:

$43.00 plus tax (Refund Policy)


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.
No References
No Citations
No Supplementary Data
No Data/Media
No Metrics

Keywords: Corporate Governance; Divestiture; G32; G34; Wealth Effects

Document Type: Research Article

Affiliations: 1: School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052 2: Business School, The University of Adelaide, Adelaide, SA 5005, Australia

Publication date: 2010-06-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more