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1 – 10 of 113Nils Teschner and Herbert Paul
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…
Abstract
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 shareholder wealth as well as the impact of important influencing factors.
Design/methodology/approach
This study is part of capital market studies which investigate shareholder wealth effects (abnormal returns) using event study methodology. To determine the significance of abnormal returns, a standardized cross-sectional test as suggested by Boehmer et al. (1991) was applied. The sample consists of 393 selloffs of publicly traded companies with a deal value of at least EUR 10m.
Findings
The findings confirm the overall positive impact of selloffs on shareholder wealth. The average abnormal return on the announcement day of the sample companies amounts to 1.33%. The type of buyer, the relative size of the transaction as well as the financial situation of the seller in particular seem to influence abnormal returns positively.
Originality/value
This study investigates shareholder wealth creation through selloffs in the DACH region, a largely neglected region in divestiture research, but now very relevant due to increasing pressure of active foreign investors. Sophisticated statistical methods were used to generate robust findings, which are in line with the results of similar studies for the US and the UK.
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Günter Prockl, Aseem Kinra and Herbert Kotzab
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that…
Abstract
Purpose
Container shipping is generally considered a global business. This truth may not hold from a single-company perspective. The companies’ physical operation networks show that container carriers operate differently and follow different paths in their internationalisation development. Additionally, the degree of internationalisation, measured on the basis of sea-oriented operations, differs from that measured according to land-oriented front-end marketing and sales activities. The purpose of this study is to further examine the internationalisation patterns of shipping lines.
Design/methodology/approach
An examination of the front-end activities and the structures of leading container-shipping companies is conducted. The sales office networks of the sector’s 20 largest companies worldwide (by twenty-foot equivalent unit capacity) are analysed as key indicators. The numbers of sales offices are measured by analysing the websites of the sample (20 companies), as well as annual reports and other publicly available data sources.
Findings
The findings show that not all shipping companies are international, by virtue of the industry. While it is difficult to observe differences in the overall patterns of the sales networks at a macro level, some companies differ in their activities. The data set also shows that market share and total capacity are not necessarily good indicators of a carrier’s worldwide presence.
Research limitations/implications
This research is based on secondary data. Other important transactional and market-oriented considerations should be examined before drawing conclusions about the internationalisation of container-shipping companies and of the industry.
Originality/value
This paper contributes to the relevant existing research, particularly by adding its view on the demand-oriented criteria as suggested by Dunning and Lundan (2008).
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