FUNCTIONAL BACKGROUND AS A DETERMINANT OF DIVESTURE’S MODES AND FIRMS’ OUTCOMES

With this paper, we target a theoretical contribution to divestiture literature and, empirically test the impact of executives’ functional background on divestitures choice and firm performance. We sample CEOs of 1054 French SMEs to look at the relationship between executives’ functional background orientation and divestiture. We find that CEOs with throughput functions are more disposed to divest than other CEOs and they are more likely to divest through downsizing divestitures. We also find the there is a positive effect on performance when CEOs pursue divestiture modes which suit with the orientation of their specific functional background.

Safsaf Nadjet (1) , Isabelle Royer (1) , Frédéric Perdreau (2)

1 Laboratoire de Recherche Magellan
2 COACTIS - COnception de l'ACTIon en Situation

Domaines: Gestion et management

Safsaf Nadjet, Isabelle Royer, Frédéric Perdreau. FUNCTIONAL BACKGROUND AS A DETERMINANT OF DIVESTURE’S MODES AND FIRMS’ OUTCOMES. http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1348, Jun 2019, Passau, Germany. ⟨halshs-02090487⟩