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https://ptsldigital.ukm.my/jspui/handle/123456789/513694| Title: | Corporate asset divestitures and shareholder wealth enhancement |
| Authors: | Lee Janice Yim Mei |
| Keywords: | Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia Corporate divestiture. Corporate reorganizations. Corporations-Investor relations |
| Issue Date: | 2012 |
| Description: | Asset divestitures are a common form of corporate restructuring but not all divesting companies improve their shareholders' wealth. Studies found that company characteristics and use of divestiture proceeds may influence post-divestiture performance but the association is unknown. This study attempts to contribute to this niche by determining how divesting companies' pre- and post-divestiture industry-adjusted performances are influenced by company characteristics and use of divestiture proceeds. A sample of 155 Malaysian divesting listed companies in 2002-2005 was identified. Logistic regressions are used to segregate these companies based on both post-divestiture market return and operational return performances. ROA sectoral indices are constructed to facilitate industry-adjustment. Significant trend changes in companies' characteristics from pre- to post-divestiture associated with improvement (success) or deterioration (failure) in performance are determined. The results show in order to achieve 'success' in Malaysian divestitures, companies must first experience urgent need to alleviate financial constraint, so that the proceeds are used to repay debt. Without urgent payout motives, 'failure' companies divest to retain proceeds instead which are most likely used for suboptimal investments, since these companies subsequently face post-divestiture financial constraint. 'Success' companies tend to divest larger relative size of assets and are larger in terms of company size than 'failure' companies. However, 'success' companies seem to be undervalued and/ or have low net assets, possibly explaining their motive to raise funds internally by asset divestitures rather than through external sources. In asset selection, 'success' companies chose to divest assets that were more inefficient. Contrary to studies from developed countries, divesting assets related to the company's core business (reducing focus) has greater association with 'success' companies.,'Certification of Doctoral Thesis' is not available,Ph.D |
| Pages: | 142 |
| Call Number: | HD2746.6.L435 2012 tesis |
| Publisher: | UKM, Bangi |
| Appears in Collections: | Graduate School of Business / Pusat Pengajian Siswazah Perniagaan |
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|---|---|---|---|---|
| ukmvital_120727+SOURCE1+SOURCE1.0.PDF Restricted Access | 1.03 MB | Adobe PDF |  View/Open |
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