Divestments in Banking. Preliminary Evidence on the Role of External Factors

• Autorzy: Krzysztof Jackowicz , Oskar Kowalewski
• Języki publikacji: EN

Abstrakty

EN

Divestment constitutes an important method of corporate restructuring. Despite this fact, the banking literature on divestment is very limited. In this text, we try to remediate partially to the shortcomings of the existing literature by examining empirically the role of external factors. Using a large sample of 313 transactions, we have established that parent companies originate from countries with relatively high accumulated wealth, slow GDP growth, stable macroeconomic situation and dominant bank intermediation in financial system. The acquirers in turn come from poorer countries with faster economic growth and relatively more market-oriented financial systems. Those results broadly conform with the predictions of three hypotheses formulated in the text, namely the weak performance hypothesis, the corporate governance hypothesis and the rebalancing hypothesis. (original abstract)

Słowa kluczowe

EN

Banking; Disinvestment

PL

Bankowość; Dezinwestycje

• Czasopismo: Contemporary Economics
• Rocznik: 2011
• Tom: 5
• Numer: nr 2
• Strony: 30--40

Twórcy

autor

Krzysztof Jackowicz

• Kozminski University, Warsaw, Poland

autor

Oskar Kowalewski

• Warsaw School of Economics, Poland

Bibliografia

• 1. Afshar, K.A., Taffler, R.J. & Sudarsanam, P.S. (1992). The Effect of Corporate Divestments on Shareholder Wealth. The UK experience. Journal of Banking & Finance, 16, 115-135.
• 2. Ahn, S. & Denis, D.J. (2004). Internal capital markets and investment policy: evidence from corporate spinoffs. Journal of Financial Economics, 71, 489-516.
• 3. Brauer, M. (2006). What have we acquired and what should we acquire in divestiture research? A Review and Research Agenda, 32(6), 751-785.
• 4. Burch, T.R. & Nanda, V. (2003). Divisional diversity and the conglomerate discount: evidence from spin-offs. Journal of Financial Economics, 70, 69-98.
• 5. Colak, G. & Whited, T.M. (2007). Spin-offs, divestitures, and conglomerate Investment. The Review of Financial Studies, 20(3), 557-595.
• 6. Decker, C. & Mellewigt, T. (2007a). The drivers and implications of business divestiture - and application and extension of prior findings. SFB 649 Discussion Paper, Humboldt -Universitat zu Berlin.
• 7. Decker, C. & Mellewigt, T. (2007b). Thirty years after Michael E. Porter: What do we know about business exit ? Academy of Management Perspectives, May, 41-55.
• 8. Denis, D.J., Denis, D.K. & Sarin A. (1997). Agency problems, equity ownership, and corporate diversification. The Journal of Finance. 52(1), 135-160.
• 9. Denis, D.J. & Kruse, T.A. (2000). Managerial discipline and corporate restructuring following performance declines. Journal of Financial Economics, 55, 391-424.
• 10. Gleason, K.C., Mathur, I. & Singh, M. (2000). Wealth effects for acquirers and divestors related to foreign divested assets. International Review of Financial Analysis, 9, 5-20.
• 11. Guedes, J. & Parayre R. (1997). Managerial reputation and divisional sell-offs: A model and empirical test. Journal of Banking and Finance, 21, 1085- 1106.
• 12. Hryckiewicz, A. & Kowalewski, O. (2010). The determinants of the exit decisions of foreign banks. Banking and Finance Review, 2(2), 53-72.
• 13. Hryckiewicz, A. & Kowalewski, O. (2011). Why do foreign banks withdraw from other countries. International Finance, 14, 67-102.
• 14. Leung, M., Young, T. & Fung, M.K. (2008). The entry and exit decisions of foreign banks in Hong Kong. Managerial and Decision Economics, 29, 503-512.
• 15. Owen, S. & Yawson, A. (2006). Domestic or international: Divestitures in Australian multinational corporations. Global Finance Journal, 17, 282-293.
• 16. Zhou, Y.M., Li, X. & Svejnar, J. (2011). Subsidiary divestiture and acquisition in a financial crisis: Operational focus, financial constraints and ownership. Journal of Corporate Finance, 17, 272-287.

Identyfikatory

DOI

10.5709/ce.1897-9254.10