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Article
Corporate Divestitures and Spinoffs in Singapore
Journal of Restructuring Finance
  • Francis KOH, Singapore Management University
  • Winston T. H. KOH, Singapore Management University
  • Benedict S. K. KOH, Singapore Management University
Publication Type
Journal Article
Publication Date
3-2005
Abstract

This paper discusses the different forms of corporate divestitures, the motives for this corporate activity, and the empirical findings about their economic outcomes. A sample of corporate divestitures is also used to identify the main motivations in the Singapore context. We conclude that divestitures are carried out to achieve operational efficiency and gain incremental profitability and liquidity. Using share price data around the event-dates, we show that announcements of divestitures generally lead to significant increases in the returns of the parent company. The positive abnormal returns are related to the relative size of the divestitures and the computed accounting gains. Overall, corporate divestiture is a value-increasing activity for Singapore companies.

Keywords
  • Spinoffs,
  • divestitures,
  • Singapore
Identifier
10.1142/S0219869X05000191
Publisher
World Scientific
Creative Commons License
Creative Commons Attribution-Noncommercial-No Derivative Works 4.0
Additional URL
https://doi.org/10.1142/S0219869X05000191
Citation Information
Francis KOH, Winston T. H. KOH and Benedict S. K. KOH. "Corporate Divestitures and Spinoffs in Singapore" Journal of Restructuring Finance Vol. 2 Iss. 1 (2005) p. 69 - 79 ISSN: 0219-869X
Available at: http://works.bepress.com/francis_koh/54/