The impact of divestment on firm performance: Empirical evidence from a panel of UK companies
UNSPECIFIED (2002) The impact of divestment on firm performance: Empirical evidence from a panel of UK companies. JOURNAL OF INDUSTRIAL ECONOMICS, 50 (2). pp. 173-196. ISSN 0022-1821Full text not available from this repository.
It has widely been suggested that during the 1980s many diversified firms narrowed the scope of their activities by refocusing on core businesses, primarily through divestment activity. This study examines the impact of divestment on firm performance, using an unbalanced panel of 132 UK quoted companies over the period 1985 to 1993, The results suggest that divestment has a positive, significant and substantial effect in raising the profitability of the vendor company. We find limited support for the view that the benefit from divestment is greater for larger and/or more diversified firms and firms operating with weak governance arrangements.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance
H Social Sciences > HC Economic History and Conditions
|Journal or Publication Title:||JOURNAL OF INDUSTRIAL ECONOMICS|
|Publisher:||BLACKWELL PUBL LTD|
|Number of Pages:||24|
|Page Range:||pp. 173-196|
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