Corporate diversification, refocusing and shareholder voting

Yerzhan Tokbolat, Hang Le, Steve Thompson

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)
32 Downloads (Pure)


We examine if shareholders' attitude towards firm diversification strategy is revealed in their votes on management-initiated acquisition and divestment proposals using data on voting by shareholders of UK public firms between 1997 and 2019. We find that voting dissent is higher for diversifying acquisitions and lower for refocusing divestments, especially when these involve diversified firms. We also find a negative relationship between diversification premium and voting dissent. Our results provide evidence that diversification characteristics of firms and deals have a significant impact on shareholders' dissent in acquisitions and divestments.
Original languageEnglish
Article number101924
JournalInternational Review of Financial Analysis
Early online date19 Oct 2021
Publication statusEarly online date - 19 Oct 2021


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