Earticle

초록

영어

Using an event study method of OLS and GARCH market models, we find evidence that on the Korean stock market, foreign asset divestitures lead to a decrement in firm value around the announcement date. The firm value decreased by the event announcements is significantly associated with the divestitures-characteristic variables. Interestingly, the divestiture announcements by firms with substantial institutional investors holding advanced professionalism for investment contribute to an increment in firm value but those by firms with many individual investors lead to a decrement in that. Given that the intent of firms’ divestitures is for retrieving money invested, the event announcements are related to an increment in firm value. In addition, the divestiture announcements of assets invested in developing host countries make a negative impact on firm value whereas those of assets invested in advanced host countries are related to a decrement in it. Unlike the case of firms in advanced countries, our differentiated finding that the divestiture announcements produce a decrement in firm value around the announcement date sheds new light on market valuation of foreign asset divestitures of firms in developing countries. Thus, this would provide firm managers, investors, and academic researchers with invaluable implications of the importance of more prudent decisions for effective foreign asset divestitures of firms based in emerging economies.

목차

ABSTRACT
 1. Introduction
 2. Literature reviews
 3. Data and Methods
  3.1 Data
  3.2 Methods
 4. Empirical findings
  4.1 Stock price reactions to foreign asset divestiture announcements
  4.2 Cross sectional analysis
 5. Conclusions
 References
 Table
 Appendix

키워드

저자

• Hyunchul Lee [ Divison of Business Administration, Chosun University, Republic of Korea ]
• Kyewon Lee [ Divison of Business Administration, Chosun University, Republic of Korea ]
• Kyungin Park [ School of Business Administration, Kyungpook National University, Republic of Korea ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330