TY - JOUR
T1 - Investigating the Valuation Effects of Announcements of Voluntary Corporate Selloffs
AU - ALEXANDER, GORDON J.
AU - BENSON, P. GEORGE
AU - KAMPMEYER, JOAN M.
PY - 1984/6
Y1 - 1984/6
N2 - 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
AB - 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
UR - http://www.scopus.com/inward/record.url?scp=0001314982&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0001314982&partnerID=8YFLogxK
U2 - 10.1111/j.1540-6261.1984.tb02323.x
DO - 10.1111/j.1540-6261.1984.tb02323.x
M3 - Article
AN - SCOPUS:0001314982
SN - 0022-1082
VL - 39
SP - 503
EP - 517
JO - The Journal of Finance
JF - The Journal of Finance
IS - 2
ER -