IDEAS home Printed from https://ideas.repec.org/a/bla/jfinan/v42y1987i5p1261-73.html
   My bibliography  Save this article

Acquisition of Divested Assets and Shareholders' Wealth

Author

Listed:
  • Sicherman, Neil W
  • Pettway, Richard H

Abstract

The divesting of corporate assets has become quite popular. Previous studies of divestitures have found conflicting impacts upon shareholders' wealth of the buying firm. This study measures the impacts of product-line relatedn ess between the acquiring firm and the divested unit and the financia l weakness of the selling firm upon the abnormal returns to the acqui ring firm. Although the study finds that the impact of financial stre ngth of the seller is ambiguous, the purchase of related assets produ ces more wealth than does the purchase of unrelated divested units. F urther, firms which purchase related divested units have larger propo rtions of insider ownership. Copyright 1987 by American Finance Association.

Suggested Citation

  • Sicherman, Neil W & Pettway, Richard H, 1987. "Acquisition of Divested Assets and Shareholders' Wealth," Journal of Finance, American Finance Association, vol. 42(5), pages 1261-1273, December.
    • Handle: RePEc:bla:jfinan:v:42:y:1987:i:5:p:1261-73
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1082%28198712%2942%3A5%3C1261%3AAODAAS%3E2.0.CO%3B2-L&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfinan:v:42:y:1987:i:5:p:1261-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/afaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.