THE LINK BETWEEN REDUCED AGENCY COSTS AND THE AT&T DIVESTITURE

Abstract

The history and divestiture of the Bell System is of immediate importance to several economies around the globe, especially those undergoing the change from state owned operations to private ownership. Similarly, those economies experiencing rapid expansion of telecommunications can also learn from the experiences of AT&T's development, maturity, and subsequent divestiture. In addition to a brief history, this study examines preliminary empirical evidence which suggests agency costs, particularly those associated with free cash flow, were reduced following the divestiture.

Citation

Burson, T.E. and Lippert, R.L. (1996), "THE LINK BETWEEN REDUCED AGENCY COSTS AND THE AT&T DIVESTITURE", Studies in Economics and Finance, Vol. 16 No. 2, pp. 67-86. https://doi.org/10.1108/eb028722