#3161. The impact of divestitures on shareholder wealth – The DACH case

October 2026publication date
Proposal available till 11-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Finance;
Business and International Management;
Organizational Behavior and Human Resource Management;
Tourism, Leisure and Hospitality Management;
Strategy and Management;
Marketing;
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Abstract:
The purpose of this research is to examine the impact of divestitures on shareholder wealth. This research covers selloffs of publicly traded companies and examines the overall effect of selloffs on shareholder wealth as well as the impact of important influencing factors. Its aims is to investigate shareholder wealth effects (abnormal returns) using event study methodology. To determine the significance of abnormal returns, a standardized cross-sectional test. The findings confirm the overall positive impact of selloffs on shareholder wealth. The type of buyer, the relative size of the transaction as well as the financial situation of the seller in particular seem to influence abnormal returns positively. The proposed statistical methods were used to generate robust findings, which are in line with the results of similar studies.
Keywords:
Abnormal return; Divestitures; Event study methodology; Selloffs; Shareholder wealth

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