Samenvatting
Nearly one-third of asset sale announcements are preceded by a public statement of the intent to sell. These voluntary disclosures generate significant average returns of 1.1%. Pre-announcements bias returns around the actual asset sales toward zero. Due to opportunistic managerial behavior, pre-announcements occur after poor stock performance and CEO turnover. Managers also opportunistically exercise options around the pre-announcements and receive potential benefits from the uptick in stock prices. Although we find no effect of pre-announcements on long-term operational performance, we do observe a negative effect on stock returns using three and four-factor models.
Originele taal-2 | English |
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Pagina's (van-tot) | 641-668 |
Aantal pagina's | 28 |
Tijdschrift | International Review of Finance |
Volume | 24 |
Nummer van het tijdschrift | 4 |
Vroegere onlinedatum | 8-jul.-2024 |
DOI's | |
Status | Published - dec.-2024 |