Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/226763
Title: EFFECTS OF DIVESTITURES ON SHAREHOLDER WEALTH
Authors: NIGEL CHEONG GENG YUAN
Issue Date: 4-Apr-2022
Citation: NIGEL CHEONG GENG YUAN (2022-04-04). EFFECTS OF DIVESTITURES ON SHAREHOLDER WEALTH. ScholarBank@NUS Repository.
Abstract: This study examines the impact of divestitures on shareholder wealth for the ultimate parent firms listed in the United States over the period 2011 to 2020 in the short-term. Thisstudy also compares the extent to which certain factors affect the magnitude of wealth creation and finds a significant positive cumulative abnormal returns of 2.53% and 2.57% over a three-day window surrounding the date of announcement. Regarding the factors affecting cumulative, abnormal returns, this study finds that unrelated divestitures, compared to related divestitures, may not lead to greater shareholder gains as previously thought, while relative divestiture size retains a strong impact. At the same time, corporate governance practices may affect shareholder wealth gain depending on the type of governance practice while most ESG practices on the other hand, does not appear to significantly affect shareholder wealth gain.
URI: https://scholarbank.nus.edu.sg/handle/10635/226763
Appears in Collections:Bachelor's Theses

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