Skip to Main content Skip to Navigation
Journal articles

What explains the market reaction to divestiture announcements?

Abstract : We show that announcements of divestitures by Australian firms induce a significant increase in shareholder value. While the extent of the market reaction depends on the relative size of the divested asset, high leverage and poor operating performance do not appear to generate higher returns. The application of quantile regressions reveals a high degree of asymmetry in the market reaction. We also find that increased focus through the divestiture of non-core assets is no longer associated with higher returns.
Document type :
Journal articles
Complete list of metadatas

https://halshs.archives-ouvertes.fr/halshs-01391551
Contributor : Camille Morin <>
Submitted on : Thursday, November 3, 2016 - 2:51:53 PM
Last modification on : Wednesday, June 24, 2020 - 12:22:01 AM

Identifiers

  • HAL Id : halshs-01391551, version 1

Citation

Justin R Lal, Pascal Nguyen, Nahid Rahman. What explains the market reaction to divestiture announcements?. Jassa , Financial Services Institute of Australasia, 2013, pp.28-31. ⟨halshs-01391551⟩

Share

Metrics

Record views

126