In recent years it is widely believed that an increase in economic activity determined by market forces, contributes to higher productivity, faster economic growth, and lower budget deficits. Developing countries, in particular, are attempting to increase the share of the private sector in their...

The purpose of this study is to develop and empirically test theories on wealth effects surrounding divestiture of foreign and domestic subsidiaries by U.S. firms. Two primary research questions are addressed: (1) What are the wealth effects associated with divestiture of foreign and domestic...