Division Management Buyouts of Unrelated Divisions Without a Sales Price Reported

Document Type



Published by Wiley-Blackwell in the Journal of Financial Research, volume 15 issue 4, 1992. Bryant users may access this article here.


Shareholder wealth effects of division management buyouts are examined: (1) for selling divisions with business operations unrelated to the parent, and (2) for announcements that do not report the sales price. Initial evidence suggests that both of these characteristics result in smaller abnormal returns. Further analysis, however, indicates that these individual effects are interdependent and that only their combined effect is accompanied by an abnormal return that is not significant.