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THE EFFECT OF VOLUNTARY CORPORATE LIQUIDATION ON SHAREHOLDER WEALTH
Author(s) -
Skantz Terrance R.,
Marchesini Roberto
Publication year - 1987
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1987.tb00476.x
Subject(s) - divestment , shareholder , business , stock price , turnover , sample (material) , stock (firearms) , monetary economics , corporate governance , financial system , economics , finance , management , mechanical engineering , paleontology , chemistry , chromatography , series (stratigraphy) , engineering , biology
This paper presents an analysis of the shareholder wealth effect of voluntary corporate liquidation, the extreme form of corporate divestiture classified as a “selloff.” For a sample of 37 firms that liquidated during the 1970–1982 period, the liquidation announcement is associated with statistically and economically significant stock price increases.