Review of Financial Studies
Выпуск N2 за 1999 год
Опубликовано на портале: 03-10-2003Philip G. Berger, Eli Ofek Review of Financial Studies. 1999. Vol. 12. No. 2. P. 311-345.
We study the precursors and outcomes of refocusing episodes by 107 diversified firms that were not taken over between 1984 and 1993. These firms had more value-reducing diversification policies than diversified firms that did not refocus. However, major disciplinary or incentive-altering events (including management turnover, outside shareholder pressure, changes in management compensation, and financial distress) usually occurred before refocusing took place. The cumulative abnormal returns over a firm's refocusing-related announcements averaged 7.3% and were significantly related to the amount of value reduction associated with the refocuser's diversification policy.