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DIVISION MANAGEMENT BUYOUTS OF UNRELATED DIVISIONS WITHOUT A SALES PRICE REPORTED
Author(s) -
Roenfeldt Rodney L.,
Sicherman Neil W.,
Trifts Jack W.
Publication year - 1992
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.1475-6803.1992.tb00113.x
Subject(s) - division (mathematics) , business , interdependence , shareholder , abnormal return , monetary economics , economics , finance , corporate governance , arithmetic , mathematics , political science , stock exchange , law
Shareholder wealth effects of division management buyouts are examined: (1) for selling divisions with business operations unrelated to the parent, and (2) for announcements that do not report the sales price. Initial evidence suggests that both of these characteristics result in smaller abnormal returns. Further analysis, however, indicates that these individual effects are interdependent and that only their combined effect is accompanied by an abnormal return that is not significant.