Some giant US conglomerates are now undergoing corporate spin-offs or are considering such spin-offs in the near future. Corporate spin-offs offer a unique opportunity to assess corporate capital structure decisions. The leverage ratio of the spin-off firms represents their initial capital...

This paper analyzes a merger of large manufacturers with divestiture in the French coffee market. In contrast to previous approaches used to study the effects of upstream divestitures on prices and welfare, we model the vertical market structure. First, our results show that the standard policy...

This paper provides evidence that regulated firms respond to the introduction of mandatory greenhouse gas (GHG) emissions disclosures in the United Kingdom by divesting assets, particularly to acquirers outside Europe. These transactions significantly decrease (increase) the regulated sellers’...

Turkey has pursued a policy of divestiture over the past four decades. Yet, it seems that the scholarly research has largely neglected a full account of the recent divestitures. To fill the gap in the literature, this article employs a Marxian analytical framework to explain divestitures in...

As demands for environmental, social, and governance (ESG) data grow, mandatory ESG disclosure regulations are becoming more prevalent globally. However, corporate responses to these regulations remain unclear. Our ChatGPT-based analysis reveals a notable increase in ESG-related discussions...

This paper evaluates the impact on prices of the 2013 merger between Anheuser-Busch InBev(ABI) and Grupo Modelo and the associated court-required divestiture of Grupo Modelo’s US business to Constellation. We use difference-in-differences and event study regressions to capture firms' price...

This paper analyses a large upstream joint venture with divestiture in the French coffee market. Contrary to previous approaches used to study the effect of upstream divestiture on prices and economic welfare, we model the vertical market structure. First, we show that divestiture can lead to...

This study develops a real options model of corporate divestitures wherein firms choose the optimal timing and conditions for a spin-off or sell-off. [A1] The divestiture timing has an inverse relationship with divestiture costs and a positive relationship with divestiture benefits. The choice...

This article discusses potential challenges to be faced during the divestiture process of the oil refineries held by state-owned company Petrobras. As a result of the COVID-19 pandemic and the oil price war between Saudi Arabia and Russia, there was a significant drop in demand and price of oil...

One approach that antitrust enforcement authorities use to address potentially anticompetitive mergers is to seek divestitures in specific, competitively problematic overlap markets while allowing the rest of the merger to consummate. We evaluate the efficacy of this approach by studying...

This study investigates the relationships among the influence of the largest shareholder, the entry mode of foreign direct investment companies in Korea, and subsidiary divestitures to demonstrate how the government's FDI policies can work as a moderator. Using data from 468 foreign...

Die Habilitation umreisst - in der Schweiz erstmalig - das Rechtsgebiet des Infrastrukturwettbewerbsrechts und bringt den Forschungsstand in Bereichen von grosser Aktualität und praktischer Bedeutung erheblich vorwärts. Sie stellt Instrumente dar, welche zur Verwirklichung von Wettbewerb in...

Der Ausbau gigabitfähiger Infrastrukturen ist eine zentrale Herausforderung der Gegenwart. Politische Ziele und Ausbaurealität fallen jedoch weit auseinander. In der vorliegenden Arbeit wird die Umsetzbarkeit verschiedener Handlungsoptionen untersucht, die die Investitionsbedingungen...

Die Eisenbahninfrastruktur des DB Konzerns wird seit der Bahnreform 1994 zusammen mit den Eisenbahnverkehrsunternehmen in einer vertikal integrierten Konzernstruktur organisiert. Diese Konzernstruktur steht jedoch im Verdacht, Wettbewerbsverzerrungen auf der Ebene der...

Purpose - The purpose of this research is to study the impact of divestitures on shareholder wealth. This study covers selloffs of publicly traded companies in Germany, Austria and Switzerland (DACH region) during the period 2002-2018. It aims to understand the overall effect of selloffs on...

This paper evaluates the importance of property rights institutions', which protect citizens against expropriation by the government and powerful elites, and contracting institutions', which enable private contracts between citizens. We exploit exogenous variation in both types of institutions...

Divestitures often accompany acquisitions, representing on average 33% of the acquisition value. Relying on a global sample, we provide support for the efficient restructuring view of acquisition-related divestitures. On average, acquisition-related divestitures are associated with an increase...

We shed light on the drivers and consequences of turnover in human resources for the UK football industry. We employ an event study using daily panel data of player transfers for a group of listed UK football clubs. Our results suggest asymmetric wealth effects: the acquisition of players is...

Due to the switching behavior of online consumers, news outlets increasingly compete with each other to attract audience for each single news item they produce, rather than for complete editions of their newspapers: the so called unbundling of journalism. Using a standard Hotelling duopoly model...

In evaluating mergers between pharmaceutical companies, the FTC frequently requires divestiture of drug products that are in the pipeline — that is, they have yet to be approved by the FDA or brought to market. This study examines the effectiveness of such pipeline mergers to ask whether the...

Die Eisenbahninfrastruktur des DB Konzerns wird seit der Bahnreform 1994 zusammen mit den Eisenbahnverkehrsunternehmen in einer vertikal integrierten Konzernstruktur organisiert. Diese Konzernstruktur steht jedoch im Verdacht, Wettbewerbsverzerrungen auf der Ebene der...

Understanding the implications of digital platform strategies on user welfare has become a crucial issue for policy makers and economists alike. In payments, distributed ledger technologies such as the blockchain have introduced new models of platform governance in the form of vertically...

Using hand-collected data on activist-initiated divestitures, we compare the long- term effects of hedge fund activists on their targets with that of other shareholder activists. We show that the distinguishing features of hedge funds are associated with substantial improvements in target-firm...

Unbundling of vertically integrated utilities has become an integral element in the regulation of network industries and has been implemented in many jurisdictions. The idea of separating the network, as the natural monopoly, from downstream retailing, which may be exposed to competition, is...

This paper shows that returns to education are not enough to capture all the returns to human capital. Using longitudinal data of all college graduates in Colombia, we estimate labor market returns to postsecondary degrees and to various skills— including literacy, numeracy, foreign language,...

The revised Markets in Financial Instruments Directive, known as MiFID II, requires the unbundling of research payments from trading execution. Using a difference-in-differences research design, we examine whether this regulation achieved its intended objective. We find that MiFID II weakened...

We show that divestitures accompanying horizontal mergers affect both the market power potential and the competitive efficiency of merging firms. Stock price reactions of customer firms are more positive (hence divestitures are more effective in mitigating the market power impact of the merger)...