Corporate Governance and Asset Sales: The Effect of Internal and External Control Mechanisms

Autor:	Robert C. Hanson, Moon H. Song
Rok vydání:	2006
Předmět:	Economics and Econometrics Shareholder Restructuring Corporate governance Agency (sociology) Control (management) Financial system Insider trading Business Asset (economics) Finance Industrial organization Divestment
Zdroj:	The Financial Review. 41:361-386
ISSN:	1540-6288 0732-8516
DOI:	10.1111/j.1540-6288.2006.00147.x
Popis:	We investigate firms that sell assets to determine whether corporate governance mechanisms are effective at controlling agency problems. Our evidence shows that these firms have lower managerial ownership and are more likely to make unrelated acquisitions, suggesting weak internal controls. Analysis of insider trading activity shows that, on average, net buying increases before the asset sale and shareholders benefit more when this occurs. Results suggest that how managers reach a given level of ownership provides more information about incentive alignment than just the level of ownership. Our results also highlight the dynamic nature of corporate restructuring as firms acquire and then sell assets.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::581b80c8f570e9ec82f266111d639e2a https://doi.org/10.1111/j.1540-6288.2006.00147.x Zobrazit plný text záznamu Plný text ve formátu PDF