Division Management Buyouts of Unrelated Divisions Without a Sales Price Reported
Document Type
Article
Keywords
Management buyouts; Stockholders; Rate of return
Identifier Data
https://doi.org/10.1111/j.1475-6803.1992.tb00113.x
Publisher
Wiley-Blackwell Publishing
Abstract
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.
