Resource title

Market response to divestiture announcements by European firms

Resource image

image for OpenScout resource :: Market response to divestiture announcements by European firms

Resource description

We present preliminary evidence on stock market reaction to divestiture announcements by European firms: divestitures by French, German, Swedish and UK firms. The complete sample will include divestitures also by firms in Belgium, Netherlands, Denmark, Finland, Norway, Switzerland, Italy, Spain, Ireland. Included here: 1- stock price reaction during initial announcements of domestic subsidiary sell-offs positive and consistent with the US evidence, 2- in contrast to sellers in the US, European seller performance improves substantially for the 60 trading days following the event, 3- subtantial information leakages in European countries many trading days prior to the initial announcement of the event to the press, 4- differences across countries in the way cumulative abnormal returns are distributed between sellers divesting domestic subsidiaries and sellers divesting foreign subsidiary, 5- extent of information assymeties between seller and buyers has an impact on the level of the underpricing of the sal

Resource author

Resource publisher

Resource publish date

Resource language


Resource content type


Resource resource URL

Resource license

Copyright INSEAD. All rights reserved