IDEAS home Printed from
   My bibliography  Save this article

Corporate restructuring and product market behaviour


  • Yilei Zhang
  • Song Wang


This article investigates the relationship between product market behaviour and corporate restructuring policies. We focus on two types of corporate restructuring events: acquisitions and divestitures. We find that 1 year after acquisition, acquiring firms on average experience long-term deteriorating product market performance. In addition, acquiring firms in industries with less competition have worse performance in subsequent years. In comparison, divesting firms experience no significant change in the performance after divestitures. Last, we document that a sustainable product market improvement is related to higher stock market valuation while a temporary improvement have negative effects. Therefore, we show that corporate restructuring has an important firm-value implication through the channel of product market effects.

Suggested Citation

  • Yilei Zhang & Song Wang, 2013. "Corporate restructuring and product market behaviour," Applied Financial Economics, Taylor & Francis Journals, vol. 23(7), pages 603-617, April.
  • Handle: RePEc:taf:apfiec:v:23:y:2013:i:7:p:603-617
    DOI: 10.1080/09603107.2012.736940

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:23:y:2013:i:7:p:603-617. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.