The impact of divestitures on shareholder wealth – The DACH case

Teschner, N; Paul, Herbert

doi:10.1108/ejmbe-08-2019-0133

Cited by 5 publications

(3 citation statements)

References 46 publications

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“…The findings of the studies are consistent with the key messages of the resource-based view, which states that companies need to focus on their core business, core resources, and know-how to be competitive and generate positive returns (Wernerfelt, 1984). Thus, current research largely agrees that reactive divestments tend to be value-destroying, while proactive divestments tend to be value-creating (Teschner & Paul, 2020).…”

Section: Current State Of Research and Research Questionssupporting

confidence: 78%

Critical Analysis of Shareholder Benefits from Spin-Offs and Carve-Outs of Carbon-Intensive Businesses: A Study of the Energy Industry

Brune¹,

Harder²,

Klingenberger³

2023

OCS

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The energy trilemma is a significant challenge of our time, driven by advancing climate change, social and political changes, and the impact of the war in Ukraine. This has led to the traditional business models of the energy industry and utilities being challenged. Against the backdrop of environmental sustainability, energy security, and affordability, this paper examines whether German utilities can achieve greater sustainability while creating shareholder value by divesting their carbon-intensive businesses. The analysis of the spin-off of E.ON-Uniper and the carve-out of RWE-Innogy reveals positive impacts on shareholder value, corporate performance, and a higher share price of all four companies after the splits. One conclusion that can be drawn is that divesting carbon-intensive businesses might create value for the company and its shareholders. However, it is important to note that the analysis did not demonstrate any benefits in terms of improved ESG ratings due to divestment.

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Section: Current State Of Research and Research Questionssupporting

confidence: 78%

Critical Analysis of Shareholder Benefits from Spin-Offs and Carve-Outs of Carbon-Intensive Businesses: A Study of the Energy Industry

Brune¹,

Harder²,

Klingenberger³

2023

OCS

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“…Investors pressure management to run the company efficiently to increase shareholder wealth (Teschner & Paul, 2019). Pressure comes from parties with interest in the company, who demand the company to present all financial and non-financial information for the benefit of each stakeholder (Ulupui et al, 2020).…”

Section: Resultsmentioning

confidence: 99%

The pentagon fraud theory perspective: understanding of motivation of executives to manipulate with the financial statements of a state-owned enterprise

Setiorini¹,

Rahmawati²,

Payamta³

et al. 2021

EA-XXI

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State-Owned Enterprises (SOEs) in Indonesia are important economic actors in the national economy. However, SOEs have problems with accountability and financial transparency. SOEs problems ultimately lead to high economic costs and reduce efficiency. This study aims to determine the practice of fraudulent financial statements in SOEs. The method used in this research is descriptive. Data was obtained using observation and documentation of the Garuda Indonesia Group company which is a major airline in Indonesia. In addition, data were obtained from the Indonesia Stock Exchange (IDX), which consists of 36 samples. This study analyzes the financial statements from 2010 to 2018 as an independent variable. The dependent variable is measured by the elements of the pentagon fraud theory (pressure, opportunity, rationalization, competence, and arrogance) to detect fraudulent financial statements. Data analysis uses Kernel regression parameters, namely R-squared, predictive sign, and standard error, to detect earnings management in the context of the Garuda Indonesia Group. The results show that all the elements of the pentagon fraud theory affect financial statements. The study results show that the pentagon theory of fraud can be relied upon to detect misreporting in financial statements of SOEs. Furthermore, the study results are expected to be considered by related parties to be better prepared when detecting financial statement fraud using the fraud pentagon theory model.

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“…and continues in the following days (Koca et al, 2019). Divestment has positive impact on shareholders wealth and resulted average abnormal return on the day of announcement (Teschner & Paul, 2020). Khajar (2012) tested the efficiency of the Islamic capital market before and after the 2008 monetary crisis.…”

Section: Share | Volume 9 | Number 2 | Jul -Dec 2020mentioning

confidence: 99%

Covid-19 Outbreak and Capital Market Reaction: An Evidence From the Jakarta Islamic Index 70

Amaroh

2020

SJEKI

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The COVID-19 outbreak has become a global problem affecting human life entirely. This paper provides evidence of the market reaction to Jokowi’s announcement regarding the first patient of COVID-19 in Indonesia on March 2, 2020. This research is an event study that looks at whether or not there is a difference in average abnormal returns of 'go public' companies registered on The Jakarta Islamic Index (JII) 70 both before and after the announcement. The observations were made 9 days before the announcement and 9 days after the announcement. Based on descriptive data, the average stock returns of JII 70 fluctuated which increased on the first day after the announcement but decreased sharply after the fifth day of the announcement. The test showed that the average abnormal returns are negative both before and after the announcement. The paired sample t-test provided evidence that there is a difference in the average abnormal return during the testing period between before and after the announcement. The market reacted negatively to the announcement indicated by negative average abnormal return and support a semi-strong market hypothesis.========================================================================================================Wabah Covid-19 dan Reaksi Pasar Modal: Bukti dari Jakarta Islamic Index 70. Wabah COVID-19 telah menjadi masalah global yang mempengaruhi kehidupan manusia sepenuhnya. Paper ini memberikan bukti reaksi pasar terhadap pengumuman Presiden Jokowi mengenai pasien perta COVID-19 di Indonesia pada 2 Maret 2020. Penelitian ini merupakan studi peristiwa yang melihat apakah terdapat perbedaan rata-rata abnormal return perusahaan go public yang terdaftar di Jakarta Islamic Index (JII) 70 baik sebelum maupun sesudah pengumuman. Pengamatan dilakukan 9 hari sebelum pengumuman dan 9 hari sesudah pengumuman. Berdasarkan data deskriptif, rata-rata return saham JII 70 mengalami fluktuasi yang meningkat pada hari pertama setelah pengumuman namun menurun tajam pada hari kelima setelah pengumuman. Hasil pengujian menunjukkan bahwa rata-rata abnormal return bernilai negatif baik sebelum maupun sesudah pengumuman. Uji-t sampel berpasangan memberikan bukti bahwa terdapat perbedaan rata-rata abnormal return selama periode pengujian antara sebelum dan sesudah pengumuman. Pasar bereaksi negatif terhadap pengumuman yang ditunjukkan oleh rata-rata abnormal return negatif dan mendukung hipotesis pasar semi-kuat.

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The impact of divestitures on shareholder wealth – The DACH case

Cited by 5 publications

References 46 publications

Critical Analysis of Shareholder Benefits from Spin-Offs and Carve-Outs of Carbon-Intensive Businesses: A Study of the Energy Industry

Critical Analysis of Shareholder Benefits from Spin-Offs and Carve-Outs of Carbon-Intensive Businesses: A Study of the Energy Industry

The pentagon fraud theory perspective: understanding of motivation of executives to manipulate with the financial statements of a state-owned enterprise

Covid-19 Outbreak and Capital Market Reaction: An Evidence From the Jakarta Islamic Index 70

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