Virtus InterPress

INFORMATION ASYMMETRIES, FAMILY OWNERSHIP AND DIVESTITURE FINANCIAL PERFORMANCE: EVIDENCE FROM WESTERN EUROPEAN COUNTRIES

Enzo Peruffo, Raffaele Oriani, Alessandra Perri

DOI: 10.22495/cocv11i4p4

Abstract

Compared to other transactions, corporate divestiture is characterized by greater ambiguity and lower transparency, which can be detrimental to stock market reaction. Drawing upon agency theory and information economics literature, this paper examines the relationship between information asymmetries, family ownership and the divestiture financial performance in Western European countries. Based on a sample of 115 Western European divestiture transactions carried out between 1996 and 2010, we find support for the assertion that information asymmetry impacts divestiture financial performance. We also show that the influence of information asymmetries is moderated by family ownership, which acts as a signal of divestiture quality.

Keywords: Information Asymmetries, Ownership, Financial Performance

How to cite this paper: Peruffo, E., Oriani, R., & Perri, A. (2014). Information asymmetries, family ownership and divestiture financial performance: Evidence from Western European countries. Corporate Ownership & Control, 11(4), 44-57. http://doi.org/10.22495/cocv11i4p4

Download This Article
Corporate Governance Experts Global Repository
Merio Honor Честь
Ryoushin Conscience Совесть
Kouki Nobility Доброе имя