Performance Implications of Exit Timing in Industry Divestiture Waves
Type
conference paper
Date Issued
2010-09-02
Author(s)
Abstract
The article analyzes how divestiture timing relative to industry peers affects divestiture stock market returns in industry divestiture waves. Industry divestiture waves are defined as periods of time characterized by relatively large number of divestitures reported in the same industry, where the activity intensifies at an increasing rate and then declines quickly. The influence of the specific firm contingencies of seller financial performance and unit relatedness are considered. The authors contend that early and late divestors generate higher stock market returns than firms that divest at the peak of an industry divestiture wave.
Language
English
Keywords
divestiture
industry waves
timing
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Dare to Care: Passion & Compassion in Management Practice & Research
Publisher
Academy of Management
Publisher place
New York
Volume
Paper Session 912
Event Title
70th Academy of Management Annual Meeting (AOM) 2010 "Dare to Care"
Event Location
Montréal, Canada
Event Date
06.-10.08.2010
Subject(s)
Division(s)
Eprints ID
69063