Divestiture and Strategic Alliance: The Competing Determinants of Creating Value
Prior researches reveal that divestiture and alliance transactions have been viewed as strategic-oriented transactions to increase companys value. The objective of this study is to test the implication of divestiture and alliance transactions announcements shown in the abnormal returns of company doing those transactions. Particularly, this study tests the implication of the competing determinants, i.e. type of divestiture and alliance transactions characteristic, the strategic focus, companys capital structure, and ownership. This study used divestiture and alliance transactions sample in Indonesia Stock Exchange (IDX) during 1991-2005 period. Generally, the results demonstrate that divestiture and alliance transactions in IDX produce wealth for companys stockholders. Debt and managerial ownership influence significantly the corporate control transactions as well as the transaction value; meanwhile, other control variables do not significantly influence the cumulative abnormal return. The results also reveal that the investors in IDX do not pay attention to the strategic focus of divestiture and alliance transactions. This phenomenon reveals implicitly a certain level of IDX investors knowledge and behavior on corporate control transactions.
Ari Warokka Che Azlan Taib Haim Hilman Cristina G.Gallato
all of College of Business, Universiti Utara Malaysia
国际会议
2011 Academy for Global Business Advancement(AGBAs)8th World Congress(全球商务发展学会第八届国际会议)
大连
英文
161-184
2011-09-15（万方平台首次上网日期，不代表论文的发表时间）