Investigating the Valuation Effects of Announcements of Voluntary Corporate Selloffs

GORDON J. ALEXANDER, P. GEORGE BENSON, JOAN M. KAMPMEYER

Research output: Contribution to journalArticlepeer-review

157 Scopus citations

Abstract

While there has been an abundance of empirical research on the subject of mergers and acquisitions, little research exists on a closely related topic—voluntary corporate selloffs. This study examines the effect on shareholder wealth of the announcement by management of an investment decision to voluntarily sell part of its operations to another firm. Positive abnormal returns are found to occur on the announcement date. However, it is found that such selloffs generally occur after a period of abnormally negative returns, suggesting the announcement is preceded by the release of negative information about the firm. 1984 The American Finance Association

Original languageEnglish (US)
Pages (from-to)503-517
Number of pages15
JournalThe Journal of Finance
Volume39
Issue number2
DOIs
StatePublished - Jun 1984

Fingerprint

Dive into the research topics of 'Investigating the Valuation Effects of Announcements of Voluntary Corporate Selloffs'. Together they form a unique fingerprint.

Cite this