How Does Divestment Affect Brand Image: A Communication Perspective

Abstract

While divestment activities have been a popular business strategy, little is known about the impact of these activities on the brand image. In this paper, we take a communication perspective and argue that divestment activities' impact on company's brand image is moderated by the announcement frame companies use. Based on this argument, we also develop several testable propositions about the impact of different divestment decisions on the company's brand image for different announcement frames.