How Far Do Owners Reach Into the Divestiture Process? Blockholders and the Ch…

Recently, outside blockholders, external owners that hold 5% or more of their firms’ outstanding common stockholdings, have been pressuring their firms to engage in divestiture activities. This study considers whether the influence of those owners also extends to how the divestiture is implemented, whether through spin-off or sell-off. Tests of an agency theory model using data from 205 dives…