Authors
Martin B Meznar, Douglas Nigh, Chuck CY Kwok
Publication date
1994/12/1
Journal
Academy of Management Journal
Volume
37
Issue
6
Pages
1633-1648
Publisher
Academy of Management
Description
In this study, we analyzed investor reaction to corporate announcements of withdrawal from South Africa to determine whether such announcements increased or reduced firms' market value. We also examined the effect of the timing of the announcements on stock valuation. The announcements were associated with a significant drop in the value of the withdrawing firms' stock, particularly for firms withdrawing earlier in the debate surrounding the issue of withdrawal. These results suggest that managers were considering the interests of groups other than stockholders in their decisions to withdraw. Implications of the results for stakeholder theory are discussed.
Total citations
Scholar articles
MB Meznar, D Nigh, CCY Kwok - Academy of Management Journal, 1994