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Divestitures

Author

Listed:
  • Emilie R. Feldman

    (University of Pennsylvania)

  • Patia J. McGrath

    (University of North Carolina)

Abstract

This article provides an introduction to divestitures and the research streams that examine these deals. Divestitures are defined as the removal of one or more of a company’s lines of business via selloff or spinoff. In this article, we describe how research on divestitures has evolved in the finance and strategy literatures, and we explain how to design and conduct empirical research studies on this topic. We also discuss the implications of divestitures for organization design, and outline some directions for future research in this domain.

Suggested Citation

  • Emilie R. Feldman & Patia J. McGrath, 2016. "Divestitures," Journal of Organization Design, Springer;Organizational Design Community, vol. 5(1), pages 1-16, December.
    • Handle: RePEc:spr:jorgde:v:5:y:2016:i:1:d:10.1186_s41469-016-0002-x
    DOI: 10.1186/s41469-016-0002-x
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    References listed on IDEAS

    as
    1. Elena Vidal & Will Mitchell, 2015. "Adding by Subtracting: The Relationship Between Performance Feedback and Resource Reconfiguration Through Divestitures," Organization Science, INFORMS, vol. 26(4), pages 1101-1118, August.
    2. José Mata & Pedro Portugal, 2000. "Closure and divestiture by foreign entrants: the impact of entry and post‐entry strategies," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 549-562, May.
    3. Mary Tripsas, 2009. "Technology, Identity, and Inertia Through the Lens of “The Digital Photography Company”," Organization Science, INFORMS, vol. 20(2), pages 441-460, April.
    4. Heather Berry, 2013. "When Do Firms Divest Foreign Operations?," Organization Science, INFORMS, vol. 24(1), pages 246-261, February.
    Full references (including those not matched with items on IDEAS)

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