Asset divestments, economic crisis, and the future performance of companies

Authors

DOI:

https://doi.org/10.19094/contextus.2022.78644

Keywords:

economic crisis, financial restrictions, performance, investments, divestments

Abstract

This paper investigated the impact of asset divestments made by financially constrained companies on their future performance, as well as their potential for reversing past losses. After applying the pairing of the companies listed, the estimation of the relationships of the variables took place through GMM and LOGIT. The research findings indicate that there is evidence that the sale of assets by companies with financial constraints contributes to future performance. A contribution of this research is for managers who have empirical results that have not yet been discussed in the Brazilian literature and that can serve as support in decision-making on the policy of selling or maintaining assets.

Author Biographies

Simone Dias de Moraes, Fucape Business School

Master in Accounting from Fucape Business School

Silvania Neris Nossa, Fucape Business School

Professor at Fucape Business School
PhD in Accounting and Administration from Fucape Business School

Nádia Cardoso Moreira, Fucape Business School

Professor at Fucape Business School
PhD in Accounting and Administration from Fucape Business School

Talles Vianna Brugni , Fucape Business School

Professor at Fucape Business School
PhD in Controlling and Accounting from University of Sao Paulo (USP)

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Published

2022-09-20

How to Cite

Moraes, S. D. de, Nossa, S. N., Moreira, N. C., & Brugni , T. V. (2022). Asset divestments, economic crisis, and the future performance of companies. Contextus - Contemporary Journal of Economics and Management, 20, 266–279. https://doi.org/10.19094/contextus.2022.78644

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