Počet záznamů: 1

Subsidiary divestiture and acquisition in a financial crisis: operational focus, financial constraints, and ownership

  1. 1.
    0358761 - NHU-C 2012 RIV NL eng J - Článek v odborném periodiku
    Zhou, Y. M. - Li, X. - Švejnar, Jan
    Subsidiary divestiture and acquisition in a financial crisis: operational focus, financial constraints, and ownership.
    Journal of Corporate Finance. Roč. 17, č. 2 (2011), s. 272-287 ISSN 0929-1199
    Grant CEP: GA ČR GAP402/10/2130; GA MŠk LC542
    Výzkumný záměr: CEZ:MSM0021620846
    Klíčová slova: divestiture * corporate restructuring * financial constraints
    Kód oboru RIV: AH - Ekonomie
    Impakt faktor: 1.447, rok: 2011

    We exploit parent- and subsidiary-level data for publicly listed firms in Thailand before, during, and after the 1997 Asian Financial Crisis to investigate the extent to which firms with different types of ownership restructure their business portfolios, in terms of divestitures and acquisitions. We compare restructuring choices made by firms mostly owned by (a) domestic individuals with block shares (family firms), (b) domestic firms and/or institutions (DI firms), and (c) foreign investors (foreign firms). We show that following the crisis (1) foreign firms' restructuring behavior is the least affected; (2) domestic firms owned by families and domestic institutions (DI) behave similarly to one another; (3) domestic firms do not increase divestiture in their peripheral segments to improve operational focus or to obtain cash in a credit crunch; they actually reduce divestiture in core segments; and (4) domestic firms also significantly reduce the acquisition of new subsidiaries. Our results challenge traditional explanations for divestiture such as corporate governance, operational refocus, and financial constraints. They indicate that in the great uncertainty of a crisis,
    Trvalý link: http://hdl.handle.net/11104/0196704