Document Type

Article

Language

eng

Format of Original

18 p.

Publication Date

1-2016

Publisher

Wiley

Source Publication

British Journal of Management

Source ISSN

1045-3172

Abstract

Corporate divestitures have been identified as important strategic actions with a positive impact on firm performance. Yet, what is still missing in the strategic management literature is an integrative framework that quantitatively synthesizes the relative impact of various antecedents to divestitures, and theoretically reconciles the multitude of theories underlying divestiture research. To fill this gap, the author conducts a meta-analysis (based on a sample of 35 studies) and develops four broad categories of determinants: corporate governance; firm strategy; performance; and industry environment. Evidence is found that divestitures are driven mainly by prior divestment experience, structural factors (firm size and firm diversification) and weak unit performance. In addition, the relative predictive validity of several theoretical perspectives on divestment decisions is assessed.

Comments

Accepted version. British Journal of Management, Vol. 27 (January 2016): 179–196. DOI. © 2016 Wiley. Used with permission.

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