Corporate Divestitures and Spinoffs in Singapore
This paper discusses the different forms of corporate divestitures, the motives for this corporate activity, and the empirical findings about their economic outcomes. A sample of corporate divestitures is also used to identify the main motivations in the Singapore context. We conclude that divestitu...
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2005
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sg-smu-ink.lkcsb_research-36052018-07-09T07:58:27Z Corporate Divestitures and Spinoffs in Singapore KOH, Francis KOH, Winston T. H. KOH, Benedict S. K. This paper discusses the different forms of corporate divestitures, the motives for this corporate activity, and the empirical findings about their economic outcomes. A sample of corporate divestitures is also used to identify the main motivations in the Singapore context. We conclude that divestitures are carried out to achieve operational efficiency and gain incremental profitability and liquidity. Using share price data around the event-dates, we show that announcements of divestitures generally lead to significant increases in the returns of the parent company. The positive abnormal returns are related to the relative size of the divestitures and the computed accounting gains. Overall, corporate divestiture is a value-increasing activity for Singapore companies. 2005-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/2606 info:doi/10.1142/S0219869X05000191 https://ink.library.smu.edu.sg/context/lkcsb_research/article/3605/viewcontent/Corporate_Divestitures.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Spinoffs divestitures Singapore Asian Studies Finance and Financial Management Portfolio and Security Analysis |
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Spinoffs divestitures Singapore Asian Studies Finance and Financial Management Portfolio and Security Analysis KOH, Francis KOH, Winston T. H. KOH, Benedict S. K. Corporate Divestitures and Spinoffs in Singapore |
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This paper discusses the different forms of corporate divestitures, the motives for this corporate activity, and the empirical findings about their economic outcomes. A sample of corporate divestitures is also used to identify the main motivations in the Singapore context. We conclude that divestitures are carried out to achieve operational efficiency and gain incremental profitability and liquidity. Using share price data around the event-dates, we show that announcements of divestitures generally lead to significant increases in the returns of the parent company. The positive abnormal returns are related to the relative size of the divestitures and the computed accounting gains. Overall, corporate divestiture is a value-increasing activity for Singapore companies. |
format |
text |
author |
KOH, Francis KOH, Winston T. H. KOH, Benedict S. K. |
author_facet |
KOH, Francis KOH, Winston T. H. KOH, Benedict S. K. |
author_sort |
KOH, Francis |
title |
Corporate Divestitures and Spinoffs in Singapore |
title_short |
Corporate Divestitures and Spinoffs in Singapore |
title_full |
Corporate Divestitures and Spinoffs in Singapore |
title_fullStr |
Corporate Divestitures and Spinoffs in Singapore |
title_full_unstemmed |
Corporate Divestitures and Spinoffs in Singapore |
title_sort |
corporate divestitures and spinoffs in singapore |
publisher |
Institutional Knowledge at Singapore Management University |
publishDate |
2005 |
url |
https://ink.library.smu.edu.sg/lkcsb_research/2606 https://ink.library.smu.edu.sg/context/lkcsb_research/article/3605/viewcontent/Corporate_Divestitures.pdf |
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1770570488019419136 |