| Article ID: | iaor201522997 |
| Volume: | 13 |
| Issue: | 2 |
| Start Page Number: | 167 |
| End Page Number: | 172 |
| Publication Date: | Jun 1990 |
| Journal: | Journal of Financial Research |
| Authors: | Roenfeldt Rodney L, Trifts Jack W, Sicherman Neil W, Cossio Francisco de |
| Keywords: | investment, management |
The impact on shareholder wealth from selling units to management is examined. The two‐day announcement period average abnormal return for parent firms divesting units to managers of those units is positive (0.80 percent) and significant. On average, the impact on shareholder wealth of parent firms divesting assets to managers of the unit is similar to the shareholder wealth effect for divestiture to third parties.