Journal of International Commercial Law and Technology
2026, Volume 7, Issue 1 : 1131-1137 doi: https://doi.org/10.5281/zenodo.19330576
Original Article
Governance, Financial, And Macroeconomic Determinants Of Long-Term Shareholder Returns Following Divestitures: Evidence From India
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1
Research Scholar, University Business School, Panjab University, Chandigarh.) Address: Arts Block 3, Panjab University, Sector 14, Chandigarh
2
Professor, University Business School, Panjab University, Chandigarh) Address: Arts Block Panjab University, Sector 14, Chandigarh.
Abstract

This study examines the governance, financial, and macroeconomic determinants of long-term shareholder returns following divestitures in India. Using data from 203 listed firms undertaking spin-offs, demergers, and asset sales between 2010 and 2023, long-run performance is measured through Buy-and-Hold Abnormal Returns (BAHRs). Employing a robust linear model with Huber’s M-estimator, the analysis reveals that focus-increasing divestitures and higher board independence have a negative influence on returns, while asset turnover enhances value creation. GDP growth exerts a significant adverse effect, underscoring macroeconomic sensitivity. Findings extend global divestiture literature to emerging markets, highlighting governance structures, operational efficiency, and economic cycles as key determinants.

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