 Value creation through corporate restructuring: European divestituresKevin Kaiser and Aris Stouraitis European Management Journal, 1995, vol. 13, issue 2, 164-174 Abstract: Kevin Kaiser and Aris Stouraitis present preliminary evidence on stock market reaction to divestiture announcements by European firms. Included in their sample are divestitures by French, German, Swedish and UK firms. Their findings include: (1) stock price reaction during initial announcements of domestic subsidiary sell-offs is positive and consistent (in size and direction) with the US evidence, (2) in contrast to evidence for sellers in the US, the European evidence indicates that seller performance improves substantially for the 60 trading days following the event, (3) there appear to be substantial information leakages in Continental European countries many trading days prior to the initial announcement of the event to the Press, (4) there appear to be differences across countries in the way cumulative abnormal returns are distributed between sellers divesting domestic subsidiaries (positive effect) and sellers divesting foreign subsidiaries (ambiguous effect), and (5) the relative size of the divested unit explains a considerable portion of the variation in stock-price effects across firms. Date: 1995 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:13:y:1995:i:2:p:164-174 Ordering information: This journal article can be ordered from Access Statistics for this article European Management Journal is currently edited by Michael Haenlein More articles in European Management Journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.