How Firm Divestiture Experience Affects Divestiture Value
| Autor: | Patia J. McGrath |
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| Rok vydání: | 2018 |
| Předmět: | |
| Zdroj: | Academy of Management Proceedings. 2018:16703 |
| ISSN: | 2151-6561 0065-0668 |
| DOI: | 10.5465/ambpp.2018.16703abstract |
| Popis: | There is a rich stream of research in the corporate strategy literature, particularly in the context of firm scope change, that has considered whether there is a relationship between firm experience and value generation and under what conditions this relationship may hold. In this paper, we complement and extend this work by investigating the fundamental question of how firm experience affects value. To do so, we set our study in the context of corporate divestiture and examine the divestitures of public, U.S.-headquartered firms over a twenty-six year period. We theoretically disaggregate divestiture value to surface three primary mechanisms in the divestiture process – divestiture duration, unit price and completion – and hypothesize that these mechanisms mediate the relationship between divestiture experience and divestiture value. Our analysis reveals that these mechanisms competitively mediate the divestiture experience- value relationship, and further shows that unit price plays a relatively large r... |
| Databáze: | OpenAIRE |
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