The Split of Svenska Cellulosa Aktiebolaget (SCA) - A case study on how companies are influenced to undertake a divestiture when the perceived internal corporate identity deviates from the external
Abstract: This thesis investigates how differences between the perceived internal corporate identity and the external identity affect the decision to divest a business unit. The chosen method was a qualitative case study of SCA, with 16 interviews of stakeholders with connection to SCA and their spin-off Essity. Like our theoretical framework based on Zuckerman (2000) and Gilson et al (2001), we found that corporate identity complements earlier research in the area as a tool for explaining divestitures and the equity discount. Our interviews further revealed that specialized investors appear to be equally important as the analysts for a firm's valuation. Opposed to Zuckerman and Gilson, the thesis suggests that the perceived internal corporate identity is a better predictor than the external of which units that are divestment candidates and that the choice of method can be explained by traditional supply and demand theories.
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