search query: @author Hite, G. L. / total: 6
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| Author: | Hite, G. L. Vetsuypens, M. R. |
| Title: | Management buyouts of divisions and shareholder wealth. |
| Journal: | Journal of Finance
1989 : SEP, VOL. 44:4, p. 953-970 |
| Index terms: | MANAGEMENT BUY-OUTS SHARE PRICES PARENT COMPANIES SHAREHOLDERS |
| Language: | eng |
| Abstract: | The wealth effects of divisional management buyouts to parent company shareholders around the announcement are examined. Despite the relative absence of "arm's-length" bargaining between buyer and seller, there is no evidence that divisional management buyouts result in reduction in parent company share prices. Instead, small but statistically significant wealth gains are found during the two-day period surrounding the announcement. This suggests that divisional buyouts reallocate ownership of corporate assets to higher valued uses and that parent company stockholders share in the benefits of this change in ownership structure. |
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