The Institutionalization of Divestitures

Miriam Flickinger investigates the stock market reaction to divestiture announcements from an institutionally-based perspective. Using meta-analytic procedures, the author extends the present financially dominated understanding of divestiture performance implications. She shows that divestitures are socially embedded when the value of a firm¿s divestiture depends on the prevailing institutional logics within the business society.

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The Institutionalization of Divestitures Miriam Flickinger

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