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| Author: | Bergh, D. D. Johnson, R. A. Dewitt, R. |
| Title: | Restructuring through spin-off or sell-off: Transforming information asymmetries into financial gain |
| Journal: | Strategic Management Journal
2008 : FEB, VOL. 29:2, p. 133-148 |
| Index terms: | restructuring corporate restructuring spin-offs implementation |
| Freeterms: | sell-offs |
| Language: | eng |
| Abstract: | This study concentrates on managerial behavior in corporate restructuring implementation. The main object is to find out, how managers choice between different implementation alternatives and how the decision affects profitability. According to the study, managers tend to select between spin-offs and sell-offs and there is some information asymmetry between managers and shareholders. Spin-offs are effective in reducing those asymmetries when restructured assets are part of firm's primary business line. When restructured assets reside in secondary business lines, sell-offs are effective in mitigating asymmetries. The results of a sample study support the arguments. |
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